The Government of Ghana has finalised a transitional agreement with Goldfields Ghana Limited to extend operations at the Damang mine for an additional year, with the goal of maintaining jobs and production while assessing the mine’s long-term prospects. Under the agreement, Abosso Goldfields Limited, a subsidiary of Goldfields, will be granted a 12-month mining lease, pending parliamentary ratification in May 2025. The lease will allow the continuation of open-pit mining and stockpile processing, managed by a joint government-company team.
This transitional arrangement is designed to provide both parties with time to conduct feasibility studies to evaluate the mineral reserves and future potential of the Damang site. Government officials highlighted that the decision is not only about ensuring short-term economic stability but also part of a broader strategy to transition mining operations into Ghanaian ownership over time.
Felix Kwakye Ofosu, the spokesperson to the President and Minister for Government Communications, who signed the statement, emphasised that both the government and Goldfields are committed to working together to ensure a smooth transition and long-term sustainability of mining in Ghana.
The Damang mine had faced uncertainty following the expiration of its previous lease, but this new agreement ensures the mine’s temporary revival. This arrangement is viewed as a bridge between current foreign operations and Ghana’s ambitions for greater local control in its mining sector.
In addition to the Damang lease, the agreement signals the beginning of discussions for the Tarkwa mine lease, which is set to expire in 2027. Both parties have expressed a commitment to improving Ghana’s image as a preferred destination for mining investment, especially amidst growing concerns over resource nationalism and community benefits.
The announcement aligns with Ghana’s efforts to reform its natural resources strategy by encouraging more local participation, streamlining regulations, and strengthening governance in the extractive sector. Industry analysts suggest that while the transitional lease provides short-term relief, the success of the eventual handover will depend on thorough feasibility studies and the government’s ability to identify competent Ghanaian operators to take over the mine.
The coming months will be pivotal as Parliament reviews the transitional lease, and as stakeholders await the outcomes of the feasibility studies, which will determine whether Damang can become a model for successful resource governance or a warning in Ghana’s mining history.
