After the back and forth, the government and GoldFields Ghana Limited have reached a transitional agreement that grants the multinational miner a 12-month lease to resume operations at the Damang Mine.
This new agreement comes after the government failed to renew the lease of GoldFields for the mine after it had expired, citing a number of operational and regulatory breaches.
The government further ordered GoldFields to exit the mine on April 18, for the government to take over on April 19.
The decision of the government generated a polarized debate among industry players. While a section believed the decision of the state is a step in the direction, others maintained that the government was treading on a dangerous path, adding that the action of the state was harsh.
But in an interesting turn of events, the government after deliberations with the company has granted Abosso Goldfields Limited, a subsidiary of Gold Fields an interim lease for a period of 12 months.
This interim lease, according to the statement released by the Presidency, is subject to the approval of parliament in May 2025. In addition, the new lease will also set stage for eventual Ghanaian ownership.
Gold Fields will be operating the mine under new and strict requirements. The company will resume open-pit mining and conduct feasibility studies to determine the mine’s remaining reserves and economic lifespan.
Simultaneously, processing of stockpiled ore will continue under a joint management team made up of officials from both the government and Goldfields.
“The Government of Ghana and Gold Fields Ghana Limited have reached an amicable agreement on a transitional plan for the Damang Mine. The operational modalities of the transition involve issuing a new 12-month mining lease to Gold Fields’ subsidiary, Abosso Gold Fields Limited, pending parliamentary ratification in May 2025,” the statement cited by The High Street Journal read.
It continued that, “Under the new arrangement, GoldFields will resume open-put mining during the transition period, safeguarding jobs and conducting feasibility studies to establish Damang’s reserves and mine life.”
The two parties have committed to working in good faith to ensure that the Damang Mine transitions into viable Ghanaian ownership. This echoes broader efforts by the government to assert greater control over the country’s mineral wealth, balancing foreign investment with national interest.
Beyond Damang, the statement hints at ongoing negotiations over the Tarkwa Mine lease, which expires in 2027. The parties have pledged to maintain constructive engagement on the future of that critical asset as well.
-thehighstreetjournal.com
