Government Declines To Renew Goldfields Mining Lease

The Government of Ghana has decided not to renew the mining lease for the Damang Gold Mine. This mine is operated by Gold Fields Ghana Limited. This decision marks a significant change in how Ghana manages its mineral resources.

In an official letter, the government informed Mr. Joshua Fraser, CEO of Gold Fields Ghana, about this decision. The Damang mining lease will expire on April 18, 2025, and will not be extended.

This directive followed a meeting on March 25, 2025, and further communication on April 3, 2025. Emmanuel Armah-Kofi Buah stated that the lease would not be renewed after over two decades of operation. He emphasized that this decision serves the best interest of the country and its citizens.

The letter instructed Gold Fields to start winding down operations immediately. It warned that any mining activity after April 18, 2025, would be illegal. The Minerals Commission will oversee the Damang site starting April 19, 2025.

Isaac Andrews Tandoh, Deputy CEO of the Minerals Commission, spoke about this issue on Citi FM yesterday. He said this move should not be seen as a setback but as a pivotal moment for Ghana's mineral wealth management.

Tandoh noted that local communities have remained underdeveloped despite immense wealth from mining activities. He added that this moment allows for a reset in these dynamics.

While specific details were not disclosed, the Commission indicated that the mine did not meet criteria for lease renewal. Gold Fields Ghana has yet to respond officially to the government's directive.

The company has operated the Damang Gold Mine since the late 1990s. It has significantly contributed to national gold output and local employment opportunities. Despite valuing its long-standing partnership with Gold Fields, the government aims to secure maximum value from its mineral resources.