Damang Mine’s return to state oversight marks critical step in Ghana’s economic reset - Minister - Ghana Business News

Government Takes Control of Damang Mine

The Government of Ghana is taking control of the Damang Mine. This follows the expiration of Abosso Gold Fields Limited's (AGL) 30-year lease on April 18, 2025. AGL's application for renewal was unsuccessful.

A statement from the Ministry of Lands and Natural Resources was issued in Accra. It described this move as a critical step for Ghana’s economy. The government aims to reassess mining licenses for better national benefits.

The statement emphasized that gold reserves should benefit citizens directly. It also mentioned a shift away from automatic license renewals in mining.

The decision was based on several factors, including AGL's failure to declare mineral reserves. According to Regulation 189 of the Minerals and Mining Act, a renewal application must include a technical report and mining operations program.

This report should detail verifiable mineral reserves, such as gold quantities found and planned extraction. Without declared reserves, the Minerals Commission cannot recommend lease extensions.

AGL's 2024 Annual Reports confirmed the absence of reserves needed for lease extension. Additionally, AGL did not provide a detailed technical program outlining past or future mine activities.

Without this information, the government cannot assess the mine’s performance properly. Furthermore, AGL has not allocated any budget for exploration at Damang over the past two years.

This lack of investment raises concerns about sustainable mining practices at Damang. As a result, under Article 257(6) of the Constitution, state oversight will begin on April 19, 2025.

The government is committed to maintaining operations and protecting jobs during this transition. All essential services will continue without interruption.

Valid contracts will be honored, wages paid, and operations sustained under state management. Local workforce retention and community-based enterprises will be prioritized according to Ghana’s Local Content Policy.

A dedicated transition team will engage with workers and community leaders soon. They aim to address concerns and collaborate on future plans.

Strict protocols will ensure safety and orderly operations during this transition period. Unauthorized access or disruptions will not be tolerated.

The government calls for cooperation from all stakeholders during this time. The next chapter for Damang Mine aims to benefit Ghanaians through fairness and innovation.

All actions will comply with Ghana's mining laws and international agreements on investment protection. The government reassures international partners that Ghana remains open to responsible investment opportunities.

They emphasize balancing interests with long-term needs for local communities. Unity and trust are essential during this transition process, which will be executed transparently.

Regular updates will be provided throughout this journey toward a sustainable future.