Government Declines To Renew Goldfields Mining Lease

Emmanuel Armah-Kofi Buah is the Minister for Lands and Natural Resources.

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 expires on April 18, 2025, and will not be extended.

The 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. This oversight falls under the Minerals and Mining Licensing Regulation 2013 (LI 2176) and other relevant laws.

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

He noted that local communities have remained underdeveloped despite immense wealth extraction from their land. Tandoh added that this moment allows for resetting those 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 this directive.

The company has operated Damang since the late 1990s and significantly contributed to national gold output and local employment. Despite valuing its long-standing partnership with Gold Fields, the government stressed that this decision aims to maximize value from Ghana’s mineral resources.