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 at the Damang Mines.

A press statement was released in Accra by Minister Emmanuel Armah Kofi Buah. The statement noted that Goldfields failed to declare mineral reserves and did not provide a technical program for the mine's sustainability. Additionally, they did not allocate a budget for exploration works.

According to Section 23 of the Minerals and Mining Act, 2006 (Act 703), the Government of Ghana will take operational control of the Damang Mine after its lease expires on April 18, 2025. This decision follows Goldfields' unsuccessful renewal application and their halt in active mining in 2023.

Goldfields shifted to stockpile processing in 2024 and plans to continue this into 2025. They estimate one year remains in the mine's life.

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

The government emphasizes that this decision was made with careful consideration, based on solid grounds:

1. Failure to Declare Mineral Reserves: AGL did not declare verifiable mineral reserves in its application. Regulation 189 requires a comprehensive technical report with details about mineral reserves. Without this information, the Minerals Commission cannot recommend extending the lease.

2. Absence of a Technical Program: Gold Fields’ application lacked a detailed technical program outlining past activities or future plans for the mine. This information is essential for assessing performance and making informed decisions.

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 mining practices and long-term viability.

Given these issues, under Article 257(6) of the Constitution, the State will assume oversight of the Damang Mine starting April 19, 2025. The government aims to maintain operations, protect jobs, honor contracts, and secure benefits from this resource.

To ensure continuity:
- All essential services will continue without interruption.
- Valid contracts will be honored.
- Wages will be paid as operations are sustained under state management.

Local employment and community enterprises will be prioritized according to Ghana’s Local Content Policy. Opportunities in transport and labor will first benefit local businesses near Damang.

A transition team will engage with workers, contractors, and community leaders soon to address concerns and provide updates transparently.

The Government is committed to enforcing strict protocols for safety during this transition period. Unauthorized access or disruptions will not be tolerated.

This moment calls for collective resolve from all stakeholders during this transition phase. The next chapter at Damang Mine aims to benefit Ghanaians through fairness and innovation while complying with mining laws and international agreements.

Ghana remains open to responsible investment while balancing interests with long-term needs of its people. Unity and trust are essential as we move forward together on this new path toward a sustainable future.