By Eugene Davis
The Minerals Commission has assumed operational control of the Damang Mine, previously managed by Abosso Gold Fields Ltd. (AGL), following the expiration of its 30-year lease on April 18, 2025. Lands Minister Emmanuel Armah-Kofi Buah has confirmed the decision, stating it aligns with government’s new policy to maximize national benefit from Ghana’s mineral resources.
AGL, a subsidiary of Gold Fields Ltd., had ceased active mining in 2023 and transitioned to stockpile processing in 2024, projecting a remaining Life of Mine of just one year. Its lease renewal application was rejected due to:
Failure to Declare Mineral Reserves: AGL did not submit verifiable gold reserves as required under Regulation 189 of the Minerals and Mining Licensing Regulations, 2012 (L.I. 2176). This was later affirmed by the company’s own 2024 annual report.
Lack of a Technical Program: The application lacked a comprehensive plan of operations, both retrospective and forward-looking.
No Budget for Exploration: AGL had not allocated funds for exploration over the last two years, indicating a lack of commitment to mine sustainability.
The Lands Minister indicated that the decision was legally grounded and taken through due process, not arbitrarily.
Ensuring Stability and Continuity
To ensure uninterrupted operations, the government is:
Honoring existing valid service contracts and continuing essential services (security, healthcare, camp management, etc.).
Prioritizing local employment and community-based procurement, in line with Ghana’s Local Content Policy.
Establishing a transition team to engage workers, contractors, and community leaders.
Enforcing strict security protocols to safeguard assets and ensure orderly transition.
Reassuring Stakeholders
Minister Buah reassured employees and international partners that Ghana remains a stable, investor-friendly destination. While encouraging continued collaboration, the government is committed to transparency, engagement, and long-term national benefit.
“This next chapter for Damang Mine will be written with Ghanaian hands for Ghanaian prosperity—anchored in fairness, responsibility, and patriotism,” the Minister affirmed.
