The government has granted a one-year mining lease to Goldfields for the Damang Mine, subject to approval by parliament in May 2025.
Following the initial refusal of the government to extend the mining lease because Goldfields failed to disclose mineral resources, present a technical plan, and assign funds for exploration, this choice has been made.
As part of the new agreement, Goldfields will restart open-pit operations throughout the transitional phase, ensuring employment security and carrying out feasibility assessments to determine Damang’s resource potential and operational lifespan.
Meanwhile, the handling of current reserves will proceed with oversight provided by a collaborative management group featuring delegates from both the government of Ghana and Goldfields.
Both sides will make their best efforts to ensure a smooth transition and final handover of an operational mine to Ghanaian control.
In a statement signed by Minister for Government Communications, Felix Kwakye Ofosu, the minister indicated that both parties 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.
As previously noted, Gold Fields, which operates the Damang Mine, revealed that their request to extend the Damang main mining lease, set to expire on April 18, 2025, was rejected by the authorities.
In a statement, Senior Vice President and Managing Director of Gold Fields Ghana, Elliot Twum, revealed that without a mining lease, the company cannot sustain operations at Damang past April 18, 2025, necessitating their evacuation from the site by this deadline.
He went on to say that the firm attempted to expand its activities at the mine, yet these endeavors proved unsuccessful.
By Prince Fiifi Yorke
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Government Grants 12-Month Mining License to Goldfields
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