Energy think tank, the Africa Centre for Energy Policy (ACEP) has called on government to halt its planned takeover of the Damang Mine , urging a return to legal processes and transparent engagement over what it describes as a rushed and flawed decision.
ACEP in a statement warned that the current approach by the Ministry of Lands and Natural Resources risks setting a dangerous precedent that could undermine investor confidence, tarnish Ghana’s international reputation, and derail the rule of law in the management of the country’s mineral wealth.
While supporting the principle that Ghana must derive full value from its mineral resources, ACEP insisted that such outcomes must be achieved through diligence, legal compliance, and facts. It described as regrettable the inconsistencies in how the Ministry has handled the decision to reject the lease renewal request by Abosso Goldfields Limited (AGL), operators of the Damang Mine.
The Think Tank recalled that “already, news portals have cited top officials suggesting that the move is part of an effort to nationalize the mine.” ACEP questioned the motive behind such a policy direction and cautioned that ” if the government is reviving the failed 1970s-era resource nationalisation agenda, it must explain what would be different this time.”
ACEP noted that “this is crucial, because while the law provides clear remedies, actions by implementing agencies are sending mixed signals.”
At the core of ACEP’s concern is the failure of the Ministry to verify AGL’s responses to the reasons cited for the lease rejection. ACEP argues that three primary justifications for the lease denial merit closer scrutiny and verification rather than outright dismissal.
On Mineral Reserves
Government claims AGL failed to declare its mineral reserves. However, ACEP points out that the company insists it has conducted exploration, completed prefeasibility studies, and submitted technical reports that indicate mineable resources with an eight-year production outlook. According to ACEP, the absence of exploration activity over a two-year period out of a 30-year operational history should not automatically invalidate existing reserve data. The claim that there are no reserves must be independently verified, especially when the state seems eager to assume operational control of the mine. ACEP questions why the state would want to take over a mine it assumes to be depleted, describing the logic as contradictory.
On Technical Programme
AGL maintains that it submitted a technical programme as part of the lease renewal process, consistent with what it had done in the past. ACEP says the Ministry must make this document public to clarify the facts and assure the Ghanaian public that decisions are based on substance, not speculation or external motives.
On Budgetary Allocation for Exploration
The Ministry also cited the company’s alleged lack of budgetary allocation for exploration as a reason for lease denial. However, AGL claimed it continued to conduct exploration-related activities known to the Minerals Commission and has submitted receipts and reports in support. ACEP insisted that too should be verified before drawing conclusions.
Regulatory Lapses and Legal Provisions
ACEP drew attention to Section 191(2) of the Minerals and Mining (Licensing) Regulations, which mandates that in cases of noncompliance with licensing requirements, “the Minerals Commission must issue a notice to the applicant and give them 10 days to correct any errors.” ACEP questioned whether that process was followed and urged the Minister to verify compliance with that procedure before executing a decision of such national significance.
The Centre reminded government that any mine closure must be accompanied by detailed exit plans, including remediation strategies, environmental commitments, and the settlement of obligations to the state and contractors. According to ACEP, “these provisions appear to have been overlooked in the haste to take over the operations of the company.”
The think tank further criticized the Minerals Commission for stating that a forensic audit would be initiated within 14 days of rejecting the lease but failing to act more than a month later.
The Role of the MREC
ACEP also addressed what it called a misinterpretation of the company’s internal classification of its reserves under the Mineral Reserves Economic Criteria (MREC). AGL had signaled in its 2024 report that Damang’s reserves did not meet the MREC. However, ACEP explained that this is an economic decision tool based on changing operational and market variables and not a definitive declaration that the mine lacks reserves. The state and its regulators, according to ACEP, cannot feign ignorance of such technical economic instruments widely used in the mining industry.
Call for Restraint and Dialogue
In light of the legal ambiguities and potential regulatory missteps, ACEP has urged government to exercise restraint. It is calling for an immediate pause in the planned expropriation, a renewed commitment to dialogue, and the adoption of a legally grounded resolution that ensures the protection of both state and investor interests.
“A rushed and disputed decision not only risks international litigation and reputational damage, but also undermines investor confidence and the rule of law,” ACEP warned.
