The Director of Research at the Institute of Economic Affairs (IEA) and policy analyst Dr. John Kwabena Kwakye is urging the government to institutionalize the return of expiring mining leases to state ownership. His call follows what he described as a “bold and important” move in reclaiming the Damang mining concession.
In a post on X (formerly Twitter), Dr. Kwakye described the state’s repossession of the Damang lease as a step that should be replicated across the sector. His remarks add to growing calls for Ghana to assert more control over its natural resources as several long-term mining leases approach expiration.
The development comes after the expiration of the 30-year lease on the Damang Mine in the Western Region, which has now reverted to the state. While some see it as a landmark moment in Ghana’s resource governance, others are warning of potential fallout if the process isn’t handled carefully.
Restoration of Damang to state ownership is an important bold step that should be replicated for all expiring mining leases. ://mobile.ghanaweb.com/GhanaHomePage/business/Damang-Mine-s-return-to-state-oversight-marks-critical-step-in-Ghana-s-economic-Lands-minister-1980519
— J. K. Kwakye (@JohnKwabenaKwa1) April 18, 2025Before the expiration of Gold Fields’ lease, the Africa Centre for Energy Policy (ACEP) had voiced strong concerns about the government’s approach to the Damang Mine issue. In a statement, ACEP urged the government to pause the takeover process and revert to transparent engagement and legal procedures. The think tank warned that rushing the move without adhering to proper legal processes could damage investor confidence, undermine Ghana’s international reputation, and undermine the rule of law in managing the country’s mineral resources.
ACEP’s criticism centered around the government’s rejection of Abosso Goldfields Limited’s (AGL) lease renewal request. The group pointed out what it saw as inconsistencies in the Ministry of Lands and Natural Resources’ handling of the case, questioning the rationale behind the decision. They raised concerns over the government’s claim that the mine lacked reserves and questioned whether the proper regulatory procedures, specifically those outlined in Section 191(2) of the Minerals and Mining (Licensing) Regulations, were followed. They also challenged the Ministry’s failure to verify AGL’s exploration activities, technical submissions, and budget allocations, which the company insisted had been provided.
However, with the expiration of the lease and the government taking over the Damang Mine, it has become clear that the government’s position was largely influenced by the critical reasons it outlined for rejecting the lease renewal. According to a detailed release by the Ministry of Lands and Natural Resources, the decision was based on three key factors: Gold Fields’ failure to declare verifiable mineral reserves, the absence of a comprehensive technical program, and the lack of exploration investment in the past two years. These issues rendered the company’s application untenable under Ghana’s mining regulations.
Meanwhile, the General Secretary of the Ghana Mineworkers’ Union (GMWU), Abdul-Moomin Gbana, has also raised concerns. He warned that a poorly managed transition could create operational uncertainty and disrupt livelihoods, especially if the state is not adequately prepared to take over mine operations. While he supports Ghana’s broader aim of maximizing benefits from its mineral wealth, he emphasized that the welfare of workers must not be compromised in the process.
As the situation unfolds, the Damang case is becoming a defining moment for Ghana, testing how the country will manage its resource sovereignty while balancing investor interests, legal compliance, and job security. The government’s move signals a shift towards more stringent oversight of the mining sector, with a focus on ensuring that the country fully benefits from its mineral wealth.
In line with this, economist Dr. J.K. Kwabena Kwakye has emphasized the need for a policy that would institutionalize the return of all expiring mining leases to the state. He views the Damang takeover as an important step that could set a precedent for how Ghana asserts control over its natural resources, ensuring the nation maximizes its benefits while maintaining legal and operational integrity in the mining sector.
