An indigenous Ghanaian mining firm is reportedly positioning itself to take over the Damang Gold Mine from Gold Fields Ghana, following the government’s recent decision not to renew the company’s mining lease, according to sources familiar with the matter.
The decision comes ahead of the expiration of Gold Fields’ mining lease. Gold Fields acquired the mine in 2002. It was previously owned by Australia’s Ranger Minerals. The Minerals Commission has cited non-fulfilment of certain regulatory requirements as the basis for rejecting the renewal application. However, industry sources close to the matter have strongly disputed this claim, insisting that Gold Fields met all the necessary conditions under Ghana’s Minerals and Mining Act.
The sources argue that while the company had shifted to processing stockpiled ore in recent years, this is standard industry practice. It allows mining firms to conduct feasibility studies and assess the viability of further investment, rather than signaling uncertainty or disinterest in future operations.
Gold Fields, which is one of Ghana’s largest gold producers and a major employer in the Western Region, is said to be in continued talks with the government to reach a mutually acceptable resolution that would allow it to extend its operations at Damang after April 18th, 2025. However, should these negotiations fail, The High Street Journal has gathered that an experienced Ghanaian-owned company in the mining sector, which also serves as a contractor for some mining companies, is preparing to formally express interest in acquiring the Damang concession through the appropriate channels.
This development adds to the growing debate about local participation in Ghana’s large-scale mining sector. Recent sentiments over the sale of Newmont’s Akyem Mine to a Chinese firm have sparked public calls for greater indigenous involvement in the ownership and operation of key mineral assets. Industry observers suggest these sentiments could work in favour of the local company, but others warn that the rejection of Gold Fields’ lease might be interpreted as a form of creeping nationalization, especially in the absence of clear, transparent processes.
Concerns have also been raised about the potential reputational damage to Ghana’s investment climate, particularly amid global scrutiny following moves to nationalize mining operations in neighbouring Burkina Faso, one of the countries recently visited by former President John Dramani Mahama.
Speaking to The High Street Journal, Mr. Abdul-Moomin Gbana, General Secretary of the Ghana Mineworkers’ Union, expressed deep concern over the government’s stance. He explained that the decision could send the wrong signal to the international community. He urged the government and Gold Fields to engage in meaningful dialogue to ensure a resolution that safeguards the interests of workers, local businesses, and host communities.
Following the news of the lease rejection, Gold Fields Limited’s stock took a hit on the Johannesburg Stock Exchange, dropping 6.3% on Monday, despite a 4.11% rise in global gold prices to $3,208.71 per ounce.
Meanwhile, the Minister for Lands and Natural Resources is expected to hold a press briefing later this week to clarify the government’s position. Tensions are mounting among mine workers, some of whom are planning to picket the ministry either next week or even earlier, depending on the outcome of the minister’s statement.
