The Ghanaian government has taken over operational control of the Damang gold mine from Gold Fields following the expiration of Gold Fields lease over the mine on April 18.
Announcing this on April 17 the Minister for Lands and Natural Resources Emmanual Armah-Kofi Buah assured all workers at the mine of job security as well as emphasising the government’s commitment to uninterrupted operations and the honouring of all service contracts.
The Minister cited a number of reasons for Government’s action after it said Gold Fields had failed to meet key requirements for renewal of the lease.
These included: failure to declare verifiable minerals reserves; the absence of a technical program outlining operational history and plans and, no budgetary allocation for exploration, undermining long-term viability.
The Minister added that, “the takeover marks a pivotal step in Ghana’s economic transformation, ensuring gold reserves directly benefit citizens and drive sustainable development. We are confident Damang Mines will continue to play a pivotal role in Ghana’s economic development.”
The Government of Ghana reaffirmed its compliance with the country’s mining lawas as well as international investment protections.
The Minister commented that “Ghana remains a beacon of responsible investment and stability. While we remain open to foreign collaboration, we are clear on balancing investor interests with the long-term needs of our people.”
Gold Fields could not be reached for comment. The group said in a statement last week that it had applied for an extension of the Damang mining lease “in accordance with the applicable law.”
On April 15 Gold Fields investor relations vice-president Thomas Mengel commented the group believed the extension should have been granted. Gold Fields halted mining at Damang in 2024 and the mine is currently only treating surface stockpiles but it still hosts a gold resource estimated at 2.27m oz.
