The government says it has reached an amicable agreement with Goldfields Ghana Limited for a transitional plan for the Damang Mine.
A statement, signed by the Minister of Government Communications, Felix Kwakye Ofosu, explained that the operational modalities of the transition involved issuing a new 12-month mining lease to Goldfields’ subsidiary, Abosso Goldfields Limited, pending parliamentary ratification in May 2025.
“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,” the statement issued in Accra on Wednesday revealed.
“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 statement added.
“The two parties will work in good faith to secure a successful transition and eventual transfer of a viable mine to Ghanaian ownership,” it emphasised.
Both parties, the statement stressed, 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
An application by Gold Fields Limited to renew the Damang Mining Lease for another 30 years was rejected by government earlier this month.
The decision not to renew the mining lease brings to an end of a 30-year lease granted Gold Fields in 1995.
By this decision, Gold Fields Limited, the world’s seventh largest gold producer of gold would be left with one mine – Tarkwa Mine – in Ghana
