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 lease renewal was unsuccessful.

The Ministry of Lands and Natural Resources issued a statement in Accra on Wednesday. They said this move is crucial for Ghana’s economic reset. The government aims to reassess mining licenses for better national benefits.

The statement emphasized that gold reserves should benefit citizens directly. It also highlighted the need for responsible management of mineral resources. The decision was not made arbitrarily; it followed due process.

AGL failed to declare verifiable mineral reserves in its renewal application. According to Regulation 189, a comprehensive technical report is required for lease extensions. This report must include details about discovered gold and mining plans.

Without declared reserves, the Minerals Commission cannot recommend lease extensions. AGL's 2024 Annual Reports confirmed the absence of reserves needed for extension approval.

Additionally, AGL did not submit a detailed technical program outlining past or future activities at the mine. This lack of information hindered proper assessment by the government.

AGL also failed to allocate any budget for exploration over the past two years. This raises concerns about their commitment to sustainable mining practices and long-term viability.

Due to these issues, the state will assume operational responsibility for Damang Mine starting April 19, 2025. The government promises uninterrupted operations and job protection during this transition.

All essential services will continue without interruption, including security and healthcare. Existing contracts will be honored, and wages will be paid as operations are regularized under state management.

Local workforce retention and community-based enterprises will be prioritized in line with Ghana’s Local Content Policy. Opportunities in transport and labor will first benefit local businesses around Damang.

A dedicated transition team will engage with workers, contractors, and community leaders soon. They aim to address concerns and provide updates during this period.

The government is committed to enforcing safety protocols during this transition phase. Unauthorized access or disruptions will not be tolerated.

They stressed the importance of cooperation from all stakeholders during this time. The future of Damang Mine will focus on fairness and innovation while benefiting Ghanaians.

All actions taken will comply with Ghana's mining laws and international agreements on investment protection.

To international partners, Ghana remains open to responsible investment opportunities while prioritizing local needs.

The government calls for unity during this transition process, promising transparency throughout it all.
Regular updates will be provided as they move forward confidently toward a sustainable future.