Why Mahama Government Has Refused To Renew Goldfields Mining Lease

The John Mahama government has explained why it will not renew the mining lease for Goldfields Ghana Limited. This lease is for the operation of the Damang Mines in the Western Region.

A press statement was signed by Minister Emmanuel Armah Kofi Buah. It was released in Accra yesterday. The statement noted that Goldfields failed to declare mineral reserves. They also did not provide a technical program or budget for exploration works.

According to Section 23 of the Minerals and Mining Act, 2006, the Government of Ghana will take control of the Damang Mine after its lease expires on April 18, 2025. This follows an unsuccessful renewal application by Abosso Gold Fields Limited (AGL), a subsidiary of Gold Fields Limited. AGL stopped active mining in 2023 and shifted to stockpile processing in 2024.

The return of the Damang Mine to state oversight is significant for Ghana’s economy. It ensures that gold reserves benefit citizens and promote long-term prosperity. This decision reflects a shift away from automatic license renewals towards thorough reassessment.

The government emphasizes that this decision was made carefully and with due process. Key reasons include:

1. Failure to Declare Mineral Reserves: AGL did not declare verifiable mineral reserves in its application. Regulation 189 requires a comprehensive technical report and mining operations program for lease extensions.

2. Absence of a Technical Program: Gold Fields’ application lacked details about past activities and future plans for the mine. Without this information, proper assessment is impossible.

3. Lack of Budgetary Allocation for Exploration: Gold Fields did not allocate any budget for exploration at Damang over two years. This raises concerns about their commitment to sustainable practices.

Given these issues, the state will assume operational responsibility for the Damang Mine starting April 19, 2025. The government aims to maintain operations, protect jobs, and honor existing contracts while ensuring compliance with legal obligations.

To achieve this, several priorities have been outlined:

- No Disruption, Only Continuity: Essential services will continue without interruption at Damang Mine.

- Priority for Local Employment & Enterprise: Local workforce retention and community-based enterprises will be prioritized under Ghana’s Local Content Policy.

- Transparency & Engagement: A transition team will engage directly with workers and community leaders to address concerns.

- Security & Stability Assured: Strict protocols will ensure safety during this transition period.

The government calls for unity among all stakeholders during this time of change. They assure international partners that Ghana remains open to responsible investment while prioritizing local needs.

Regular updates will be provided as they move forward on this new path toward sustainability and progress in Ghana's mining sector. Thank you all!