In order to guarantee the Damang Mine's operations and employment stability and to pave the road for future Ghanaian ownership, the government and Gold Fields Ghana Limited have concluded the agreement on transitional measures.
A 12-month mining license for Damang will be awarded to Gold Fields' subsidiary, Abosso Goldfields Limited, under the revised proposal, pending legislative approval in May 2025.
While conducting feasibility studies to evaluate the mine's reserves and long-term sustainability, Gold Fields will continue open-pit mining during this time.
Government and Gold Fields officials will form a combined management team to supervise the processing of current stocks and guarantee a seamless transition.
In order to successfully transfer management of a sustainable mine to Ghana, both parties have pledged to act in good faith.
The deal also lays the groundwork for talks over Goldfields' lease renewal for the Tarkwa Mine, which is slated to expire in 2027.
Both Gold Fields and the government reiterated their commitment to enhancing Ghana's mining industry as a desirable location for foreign investment.
Felix Kwakye Ofosu, Minister for Government Communications and Spokesperson to the President, said in a statement that the agreement benefits Ghana's mining communities and economy.
Context
The Damang Mine is a concession owned by Abosso Goldfields Limited, a division of Gold Fields Limited. The government recently said that it has taken operational control of the mine.
The action came after Gold Fields Limited's request to extend its 30-year mining tenure at the plant for an additional 30-year period was denied.
According to reports, the 30-year lease held by Abosso Goldfields Limited ended on April 18, 2025.
According to a statement from the Ministry of Lands and Natural Resources, the government's move was a significant step in Ghana's economic recovery, guaranteeing that the country's gold reserves directly benefited its people and fuelled long-term prosperity while also reducing concerns about the future of the company's more than 1,300 employees.
Justification
According to the statement sent to the Daily Graphic, the government's choice was backed by strong, factual evidence.
"The government's policy shift away from the neo-colonial practice of automatic mining license renewals in Ghana and towards a thorough reassessment of mining licenses to maximise national benefit is in line with this decision," the statement stated.
In order to ensure Ghana's legitimate benefits from this essential resource, the statement promised that despite the government's control over the concession, it would continue to uphold continuous operations, safeguard jobs, and honour current, valid service contracts while making sure that all legal and financial requirements were met.
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