The Government of Ghana and Gold Fields Ghana Limited have successfully negotiated a transitional plan for the Damang Mine, following the conclusion of the company’s 30-year mining lease on April 18.
This agreement permits Gold Fields’ subsidiary, Abosso Goldfields Limited, to maintain operations under a new 12-month mining lease, which is subject to parliamentary approval in May 2025.
In a statement issued on Wednesday, April 23, Felix Kwakye Ofosu, the Spokesperson for the President and Minister responsible for Government Communications, remarked, ‘Under this new arrangement, Goldfields will recommence open-pit mining during the transition period, thereby protecting jobs and undertaking feasibility studies to assess Damang’s reserves and mine life.
Simultaneously, the processing of existing stockpiles will proceed under the oversight of a joint management team comprising representatives from both the Government of Ghana and Goldfields.
The two entities are committed to collaborating in good faith to ensure a successful transition and the eventual transfer of a viable mine to Ghanaian ownership. Furthermore, the statement indicated that both parties have consented to continue discussions in good faith.
‘Both parties have agreed to further discussions in good faith regarding the renewal of the lease for the Tarkwa mine, which is set to expire in 2027, and have committed to working together to enhance Ghana’s potential as a favorable investment destination in the mining sector,’ the statement concluded.
