The Minister for Lands and Natural Resources, Mr Emmanuel Armah-Kofi Buah, has revealed that the government decided not to renew the mining lease of Gold Fields Ghana Limited for the Damang Mine because the company failed to comply with the terms of the agreement, particularly the legal framework for an application for a renewal of the lease.
Speaking during a high-level working visit to the Damang Mine, the Lands and Natural Resources Minister reiterated that the non-renewal was based primarily on the company’s inability to meet essential provisions of the expiring lease.
Mr Buah explained that Ghana’s mining laws clearly stipulate the conditions that must be satisfied before any lease can be renewed, including the timely submission of applications, evidence of continued investment, and credible long-term operational plans.
According to him, Gold Fields did not adequately fulfill these requirements, raising serious concerns about compliance and commitment to the asset.
Mr Buah who is also the Member of Parliament (MP) for Elembelle, said despite the non-renewal of the lease, the state granted a one-year extension for Gold Fields to facilitate a safe and orderly transition.
As the April 18, 2026, deadline for expiration of the lease approaches, the Ministry recently announced a competitive bidding process to identify a new investor and operator for the mine, with the government emphasising its preference for long-term Ghanaian-centered ownership, adequate investment and value creation.
Inspection and stakeholder engagement
The Lands and Natural Resources Minister made the remarks during a comprehensive inspection of the Damang mine together with officials from the Minerals Commission, Members of Parliament on the Lands and Natural Resources Committee, and a specially constituted transition team.
The visit formed part of the government’s broader efforts to ensure that the transition process at Damang is handled in a manner that safeguards national interest while maintaining operational continuity.
The team toured key operational areas of the mine and engaged both management and workers, gaining firsthand insight into the state of operations and the concerns of employees, particularly about job security.
Gold Fields exit plan
Gold Fields, which has operated the Damang Mine since acquiring interests in the 1990s, had already been considering an exit strategy due to the mine’s ageing profile and declining reserves.
It halted active mining operations in 2023 and shifted to stockpile processing in 2024, a move widely interpreted as signalling a gradual wind-down of activities.
With the remaining life of the mine estimated at about nine years, questions emerged regarding the level of reinvestment required to sustain operations.
Officials pointed to what they described as inadequate proportional investment in recent years, coupled with job cuts, as further indications that the company had not fully aligned with the expectations embedded in Ghana’s mining lease framework.
According to the Sector Minister, these developments reinforced the conclusion that renewal of the lease could not be justified under existing legal provisions.
Jobs and livelihoods assured
There were concerns about job security during the engagement with the stakeholders, with many workers expressing anxiety about the impact of the ownership transition.
However, addressing these issues, Mr Buah assured employees that no jobs would be lost as a result of the process. He announced that President John Dramani Mahama had given explicit directives prioritising worker protection.
“This assurance is coming directly from the President. His focus is on the people who work here—those who have families and need to be protected,” the Minister emphasised.
Transition process underway
Despite the non-renewal decision, the government granted a one-year extension to facilitate a structured and orderly transition.
The government has already indicated a strong preference for indigenous investors who demonstrate long-term commitment and a Ghanaian-centred approach to ownership and value creation.
Local firm emerges as frontrunner
Among the shortlisted bidders are Engineers and Planners Company Limited, BCM International, and consortium Vortex Resources.
Industry players believe Engineers and Planners have emerged as a frontrunner, leveraging its existing role as a contractor at the Damang Mine and its extensive experience within Ghana’s mining sector.
The government has confirmed that the transition is being guided by detailed and phased plans designed to maintain production levels, uphold safety standards, and honour existing contractual obligations.
Gold Fields, according to the government, is cooperating with the government and the transition team to ensure a smooth and seamless handover.
Parliamentary oversight and national interest
Mr Buah indicated that Parliament is actively involved in shaping future lease arrangements to ensure that the next phase of operations aligns with national development objectives.
The Ranking Member of the Lands and Natural Resources Committee, Mr Kwaku Ampratwum-Sarpong, described the inspection as timely and necessary.
Lawmakers, he stressed, are focused on ensuring that the eventual takeover delivers maximum value to the country.
By Kingsley Asiedu
