Ghana’s government has officially taken operational control of the Damang gold mine after rejecting Gold Fields Ghana Limited’s application to renew its mining lease, which was set to expire on April 18, 2025.
The Ministry of Lands and Natural Resources clarified that all existing arrangements will remain in place under state stewardship, with the transition directed by the appropriate government authorities.
Minister Emmanuel Armah‑Kofi Buah announced during a press briefing on April 16, 2025, that no worker at Damang will lose employment and that all valid contracts will be honoured. He emphasised that “your dedication has been the backbone of this mine, and it will remain indispensable,” assuring employees, contractors, and service providers of uninterrupted operations, prompt wage payments, and continuity of essential services.
The government’s assumption of responsibility takes effect on April 19, 2025. According to the Ministry and the Minerals Commission, there will be no sackings, and the new administration is committed to a seamless handover to maintain operational stability and safeguard livelihoods.
All existing service agreements, ranging from security provision to healthcare and camp management, will continue without interruption. Wages will be paid in full and on schedule, reflecting the commitment to uphold contractual obligations in the transition to state control.
In line with Ghana’s Local Content Policy, the government has pledged to prioritise local employment and procurement. The transition plan specifies strict adherence to regulations that favour retention of the Ghanaian workforce and the expansion of business opportunities for community‑based enterprises in the Damang catchment area.
The lease renewal application was denied just days before the existing 30‑year agreement, first granted on April 18, 1995, was due to end. The government, which holds a 10 percent stake in both Tarakwa and Damang operations, cited non‑compliance with lease conditions as the primary reason for refusal.
Damang produced 135,000 ounces of gold in 2024, accounting for roughly six percent of Gold Fields’ global output. Despite the company’s planned orderly exit, the government’s intervention ensures continuity of production and protects the region’s economic base.
This decision marks a significant shift in Ghana’s mineral management strategy, reflecting a move toward more rigorous oversight and value‑driven stewardship of national resources. By securing employment and reinforcing local content requirements, the government aims to balance investor confidence with the interests of Ghanaian communities. The real challenge will lie in the effective implementation of these commitments and the ability to sustain transparent, community‑focused operations in the long term.
Source: News Ghana / Digpu NewsTex