THE GOVERNMENT has issued a 12-month mining lease to Goldfields for the Damang Mine, pending parliamentary ratification in May 2025.
This decision comes after the government initially declined to renew the mining lease due to Goldfields’ failure to declare mineral reserves, provide a technical program, and allocate a budget for exploration.
Under the new arrangement, Goldfields will resume open-pit mining during the transition period, safeguarding jobs and conducting feasibility studies to establish Damang’s reserves and mine life.
At the same time, the processing of existing stockpiles will continue under the supervision of a joint management team composed of representatives from the Government of Ghana and Goldfields.
The two parties will work in good faith to secure a successful transition and eventual transfer of a viable mine to Ghanaian ownership.
In a statement signed by Minister for Government Communications, Felix Kwakye Ofosu, the minister indicated that both parties have agreed to advance discussions in good faith on the renewal of the lease for the Tarkwa mine, due in 2027, and pledged to work together to enhance Ghana’s potential in the mining sector as a favourable investment destination.
It will be recalled that Gold Fields, operator of the Damang Mine, announced that its application for the extension of the Damang main mining lease, which expired on 18 April 2025, has been denied by the government.
Senior Vice President and Managing Director, Gold Fields Ghana, Elliot Twum, in a statement, indicated that with the absence of a mining lease, the company is unable to continue operations at Damang beyond April 18, 2025, and is required to vacate the lease by the set date.
He further explained that efforts were made by the company to extend its operations at the mine but to no avail.
By Prince Fiifi Yorke