Government Is Set to Take Over Damang Mines as Gold Fields’ 30- Year Lease Expires

In a significant shift to restore the country’s economy, the Government of Ghana through the ministry of Lands and Natural Resources has announced to assume operational control of the Damang Mine operated by Abosso Gold Fields’ Limited whose contract is set to expire on Friday, April 18, 2025.

This transition follows an unsuccessful reclamation and expiration of a 30-year mining lease, which in turn marks an important milestone in the government’s mission to reset the nation’s economic landscape.

This presumption is being carried out in accordance to Section 23 of the Minerals and Mining Act, 2006 (Act 703) and marks a pivotal shift in the government’s approach to managing mineral resources for maximum national benefit.

Well known for its gold deposits, the Damang mine is poised to play an important role in strengthening the country’s economy. The gold extracted will ease financial pressures on citizens and serve as a critical source of funding for nationwide infrastructure development.

According to the Ministry of Lands and Natural Resources and the Minerals Commission, the rejection of the renewal was based on data-based, legal and technical grounds including;

The failure to Declare Reserves, that is, AGL did not provide verifiable gold reserves in its renewal application. No Proficient Mining Programme, which explains that, the company did not submit a clear operational plan or technical justification for continued mining. And the Lack of Exploration Investment, saying that Gold Fields failed to allocate any budget for exploration at Damang in the past two years, raising concerns over long-term viability. Adding that these are mandatory requirement under Ghana’s mining laws.

Interestingly, Gold Fields’ own 2024 Annual Report, published in March 2025, reportedly supported the government’s position, indicating no significant mineral reserve at the site.

The government has assured all workers, service providers and contractors that there will be no disruptions in its operations.

However, the government promises maintaining job security, prioritizing local hiring and procurement, honouring all valid contracts and service agreements and ensuring transparency throughout the transition process.

As the country embarks on this new chapter, citizens are encouraged to support the initiative and participate in upcoming consultations to maximize the mine’s benefits pledging that this new transition will maintain transparency and work with local stakeholders to ensure equitable wealth distribution and comprehensive national development.