The Government of Ghana and Gold Fields Ghana Limited have reached a mutual agreement on a one-year transitional arrangement for the Damang Mine, following the expiration of the company’s 30-year lease on April 18.
Under the new deal, Abosso Goldfields Limited, a subsidiary of Gold Fields, will continue mining operations under a temporary 12-month lease, which is awaiting parliamentary approval in May 2025.
A statement issued on Wednesday, April 23, and signed by Felix Kwakye Ofosu, Presidential Spokesperson and Minister for Government Communications, confirmed that open-pit mining will resume during this transition period. This move aims to preserve existing jobs while feasibility studies are conducted to assess the mine’s reserves and future viability.
In the meantime, processing of current ore stockpiles will continue under a joint management team composed of representatives from both the government and Gold Fields. The collaborative arrangement is intended to ensure a smooth transition and pave the way for eventual Ghanaian ownership of a viable mining operation.
The statement also noted that both parties have committed to ongoing, good-faith negotiations regarding the renewal of the Tarkwa mine lease, which is set to expire in 2027. The government and Gold Fields reaffirmed their shared goal of promoting Ghana as an attractive destination for mining investment.
