Ghana Signs Transitional Mining Agreement with Goldfields for Damang Operations

The Government of Ghana has reached a transitional agreement with Goldfields Ghana Limited to extend operations at the Damang mine for another year. The agreement aims to secure jobs and maintain production while assessing the long-term viability of the site.

Details of the Agreement

The agreement grants a 12-month mining lease to Abosso Goldfields Limited, a Goldfields subsidiary. The lease is pending parliamentary ratification, expected in May 2025. It allows open-pit mining and stockpile processing to continue, overseen by a joint management team with representatives from both the government and Goldfields.

The goal of this interim framework is to conduct feasibility studies to evaluate the mineral reserves and future potential of Damang. This strategy supports the Government of Ghana’s broader effort to gradually transfer mining operations into local hands, ensuring the sector’s sustainability.

Strategic Implications for Ghana’s Mining Sector

Felix Kwakye Ofosu, the Spokesperson to the President, emphasized the government and Goldfields’ commitment to a smooth transition. The agreement serves as a bridge between foreign ownership and Ghana’s goal of increasing local control over its mining industry.

The Damang mine, which faced uncertainty after the expiration of its previous lease, is now set for a temporary revival. This agreement provides short-term economic continuity while strengthening Ghana’s mining sector governance and encouraging local participation.

Next Steps for Goldfields and Ghana

The agreement also marks the start of early negotiations for the Tarkwa mine lease, which will expire in 2027. Both parties are committed to improving Ghana’s image as an attractive mining investment destination. They will work together to address concerns over resource nationalism and community benefit frameworks.

Analysts suggest that while the transitional lease offers short-term relief, the future of the Damang mine depends on strong feasibility studies. Ghana must also identify credible local operators to take over the mine. The coming months will be critical as Parliament reviews the lease and completes the feasibility studies.

Conclusion: Ghana’s Path Toward Greater Local Control

This transitional agreement with Goldfields marks a pivotal moment in Ghana’s mining sector. As the country adjusts its natural resource strategy, the agreement’s success depends on effective feasibility studies and the government’s ability to promote local ownership. If successful, the Damang mine could become a model for future mining operations in Ghana, paving the way for a more sustainable, locally-driven approach to resource governance.