Damang Lease Rejected, State Assumes Control

 


The Government of Ghana has announced its decision to take over operations at the Damang Mine, operated by Abosso Gold Fields Limited (AGL), following the expiration and rejection of the company’s application to renew its 30-year mining lease, which ends on April 18, 2025.


In a strongly-worded statement issued on April 16, 2025, the Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, explained that the government’s decision is rooted in legal provisions under Section 23 of the Minerals and Mining Act, 2006 (Act 703) and grounded in national interest.


The Damang Mine, a subsidiary of Gold Fields Limited, halted active mining operations in 2023 and switched to processing stockpiles in 2024. With the company estimating only a year of life left in the mine, its renewal application was scrutinized and ultimately rejected due to several critical deficiencies.


According to the Minister, AGL failed to declare any verifiable mineral reserves to justify the lease extension, as required under Regulation 189 of the Minerals and Mining Licensing Regulation, 2012 (L.I 2176). Furthermore, the company did not provide a comprehensive technical program or allocate a budget for exploration activities in the past two years—raising serious concerns about its commitment to long-term, sustainable mining.


“The company’s own 2024 Annual Report, published just days after the rejection notice was served, confirmed our position that there are no viable reserves to justify extending the lease,” Hon. Buah stated.


Effective April 19, 2025, the state will assume full oversight and operational control of the Damang Mine, in accordance with Article 257(6) of the 1992 Constitution. The government has assured stakeholders that there will be no disruptions to operations, and all valid contracts, wages, and services will be honored.


The transition will focus on retaining local workers, prioritizing community-based enterprises, and maintaining transparency. A dedicated transition team will be deployed to engage workers, contractors, and local leaders to ensure a smooth and lawful transfer of control.


To the international community, the Minister reassured that Ghana remains open to responsible investment and collaboration, but emphasized a shift away from automatic license renewals, which he described as a relic of neo-colonialism.


“This is a new chapter—written with Ghanaian hands for Ghanaian benefit,” the statement concluded, calling for unity and patriotism as the country reclaims direct control over its mineral wealth.

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