A mining lease valid for one year and not subject to renewal has been granted to Abosso Goldfields Limited (AGL) with parliamentary approval for gold mining activities in Damang, Wassa West District.

The initial lease agreement was planned to expire on April 18, 2025 and handed over to the government but has now been extended to April 2026 after stakeholder consultations.

Moving the motion for the ratification of the agreement, Minister for Lands and Natural Resources Emmanuel Armah Kofi Buah stated emphatically that “the Governor of Ghana has caused to be laid before Parliament, through the Minister responsible for Lands and Natural Resources, a one-year transitional mining lease agreement between the government of the republic of Ghana and Abosso Goldfields Limited for the mining of the Gold at Damang in the Wassa West District of the Western Region without the option, and I emphasize, without the option of further extension, transfer, mortgage, or any other transactions after April 2026.”

Parliament has explicitly prohibited any further extension beyond the newly extended date. Months ago, tensions flared up at the Damang Mine in Ghana’s Western Region as employees grew anxious over potential job losses following news of a government takeover. More than 1,000 workers represented by the Ghana Mine Workers’ Union were set to protest at government offices due to deep uncertainty about their livelihoods, but they were concretely assured of job security.

Addressing the press on Wednesday, April 16, the Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, reaffirmed the government’s commitment to safeguarding jobs, maintaining operations, and honouring existing service agreements at the mine.

“We want to assure the hardworking employees, contractors, and service providers at Damang that your dedication has been the backbone of this mine, and it will remain indispensable. All essential services—from security to healthcare, fuel supply to camp management—will continue without interruption. Valid contracts will be honored, wages paid, and operations sustained as we work to regularize arrangements under the State's stewardship,” the Minister stated.

The earlier decision to assume direct operational control of the mine comes after AGL, a subsidiary of Gold Fields Limited, failed to meet critical requirements necessary for a lease renewal. According to the Minister, the company did not declare verifiable mineral reserves, presented no technical programme to guide operations, and made no financial provisions for exploration—factors that severely undermined the long-term viability of the mine.

Despite these setbacks, the government remains focused on the mine’s contribution to both the local economy and national development. “Despite the challenges that led to our decision, we recognize the importance of Damang Mine to the local economy and the country as a whole. We are committed to ensuring that the mine continues to operate efficiently and effectively, with benefits accruing to the State and its citizens,” Honourable Buah added.

To ensure a seamless transition, the government has put in place a structured plan aimed at preserving the workforce, supporting local enterprises, and maintaining safety and infrastructure at the site. Workers, contractors, and community leaders will be engaged throughout the process to address any concerns and provide timely updates. The Minister emphasized that the government remains dedicated to transparency during the transition.

“We are committed to transparency and accountability throughout this process. Regular updates will be provided to ensure all stakeholders are informed,” he said. The takeover also represents a broader vision for Ghana’s economic future. According to the Minister, this move is part of a national effort to ensure that the country’s mineral wealth contributes more directly to its long-term development agenda.

“Today's decision will yield a brighter, more sustainable tomorrow. We are confident Damang Mine will continue to play a pivotal role in Ghana's economic development,” the Lands Minister indicated.

Reiterating the government’s commitment to responsible mining practices, Hon. Buah assured that operations will continue in compliance with the Minerals and Mining Act, 2006 (Act 703), and that the rights of international investors will be respected under applicable laws.

“Ghana remains a beacon of responsible investment and stability. While we remain open to foreign collaboration, we are clear on balancing investor interests with the long-term needs of our people.”

Hon. Armah-Kofi Buah concluded with optimism about the future of the mine, stressing the administration’s determination to keep Damang operational and productive in a way that benefits the nation and its people.

Gold Fields Limited is the seventh-biggest producer of gold in the world and has two operational mines in Ghana, namely the Tarkwa Mine, which is operated by Gold Fields Ghana, and the Damang Mine, which is run by Abosso Goldfields Limited. In 2011, Gold Fields bought out IAMGold’s remaining interest in Damang, and the company now owns a 90 percent stake, with the Government of Ghana holding the remaining 10 percent.

According to the 2024 annual report of Gold Fields, no mineral reserves were declared at Damang, which meant there were no defined gold reserves to be mined there. Actual mining at the mine is said to have stopped in 2023 as the company resorted to processing stockpiles.

It is reported in the Mineral Resources and Reserves Supplement to the Integrated Annual Report of 2023 that no exploration was proposed for the Damang Mine in 2024. Gold Fields took over the Tarkwa mine from the State Gold Mining Company in 1993 and acquired Damang mine in 2002.

Gold Fields contributes significantly to the development of the country through job creation, taxes and royalties, community and infrastructure investments, as well as local procurement and enterprise development.