The Government of Ghana and Goldfields Ghana Limited have finally agreed on a transitional plan for the Damang Mine.
The operational modalities of the transition involve issuing a new 12-month mining lease to Goldfields’ subsidiary, Abosso Goldfields Limited, pending parliamentary ratification in May 2025.
A statement issued by Minister of Government Communications, Felix Kwakye Ofosu on April 23, 2025 said a new arrangement have been outlined for Goldfields to resume open-pit mining during the transition period, safeguarding jobs and conducting feasibility studies to establish Damang’s reserves and mine life.
A joint management team composed of representatives from government and Goldfields will supervise the processing of existing stockpiles and ensure a smooth transition.
The two parties are expected to work in good faith to secure a successful transition and eventual transfer of a viable mine to a local ownership.
“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,” the statement noted.
Gold Fields Limited had earlier disclosed that its lease extension application of the Damang Main Mining has been rejected.
The company had applied for an extension of the Damang Main Mining Lease (the Lease Extension Application) in December 2024 however, it received notification from the Minerals Commission of Ghana that the application was not granted.
The Government has since instructed Gold Fields to cease operations and vacate the lease area by April 18 on expiry of the lease.
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