GoG and Goldfields reach agreement on Damang Mine Transition

The Government of Ghana and Goldfields Ghana Limited have reached an amicable agreement on a transitional arrangement for the Damang Mine, aimed at securing jobs, ensuring responsible mining, and maintaining investor confidence in the country’s extractive sector.

According to Hon. Felix Kwakye Ofosu, Member of Parliament and Spokesperson to the President, the transitional plan involves the issuance of a new 12-month mining lease to Abosso Goldfields Limited, a subsidiary of Goldfields, to operate the Damang Mine.

This arrangement, pending parliamentary ratification in May 2025, is part of broader efforts to ensure continuity of operations while preparing for a structured transfer of the mine into Ghanaian hands.

“As part of this transition, open-pit mining activities will resume to safeguard hundreds of jobs and allow for feasibility studies to determine the viability of the mine’s remaining reserves,” Hon. Kwakye Ofosu disclosed in a press statement.

He further noted that a joint management team, comprising representatives from the Government of Ghana and Goldfields, will oversee ongoing processing of existing stockpiles.

This team will also collaborate to guarantee transparency, efficiency, and stability during the transition period.

The government, he said, is committed to working with Goldfields in good faith to ensure a successful handover that ultimately leads to full Ghanaian ownership of the Damang Mine.

Hon. Kwakye Ofosu also indicated that both parties have agreed to advance ongoing discussions on the renewal of the lease for the Tarkwa Mine, which expires in 2027.

He reaffirmed the government’s commitment to positioning Ghana as a premier destination for mining investment through strategic partnerships and robust regulatory frameworks.

“This agreement is yet another demonstration of President John Mahama’s commitment to protecting Ghanaian jobs, promoting responsible resource management, and ensuring that the benefits of our natural resources remain with the Ghanaian people,” he added.

Story by: Joshua Kwabena Smith