Government Urged to Rethink Abosso Lease Rejection


The Africa Centre for Energy Policy (ACEP) has warned the government against its decision to take over the Damang Mine operated by Abosso Goldfields Limited (AGL) without exhausting legally mandated processes. Addressing the media on April 17, 2025, Executive Director Benjamin Boakye urged restraint and a return to dialogue to prevent what he termed a potentially costly expropriation.

ACEP, which has followed developments closely, held separate engagements with government officials and AGL, as well as a review of the Minerals and Mining Act. Boakye questioned the government's legal grounds for refusing to renew AGL’s mining lease, citing Section 27 of Act 703, which stipulates that operations must continue pending the resolution of disputes if arbitration has been initiated—a step AGL has reportedly taken.

ACEP raised alarm over past hasty state decisions that have cost Ghana heavily, citing the Ameri, Agyapa, and GPGC deals, and the failed GNPC-Aker acquisition attempt. According to Boakye, the reasons cited for the lease rejection—such as the suspension of active mining, absence of a technical program, and budgetary gaps in exploration—require thorough verification.

He stressed that the state cannot penalize AGL if the Minerals Commission had approved the company’s stockpile processing. Furthermore, if the Commission’s internal processes, such as timely feedback on application errors, were not followed as per the Minerals and Mining (Licensing) Regulations, the lease rejection risks being legally flawed.

Boakye also criticized the Commission for delaying a forensic audit it had promised more than a month ago and warned against actions that may be perceived as an attempt to nationalize the mine, reminiscent of failed policies of the 1970s.

ACEP called for a pause on any expropriation actions, urging government to follow due process to avoid damaging investor confidence, Ghana’s reputation, and future mining investments.

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