The Government of Ghana and Goldfields Ghana Limited have reached a mutual agreement on transitional arrangements for the Damang Mine, setting the stage for renewed operations and long-term local ownership.
Announced on Wednesday, April 23, 2025, the agreement outlines a new 12-month mining lease for Goldfields’ subsidiary, Abosso Goldfields Limited. The lease is pending ratification by Parliament in May 2025 and is expected to facilitate the continuation of mining activities at the Damang site.
As part of the transitional plan, Goldfields will resume open-pit mining operations while conducting feasibility studies to assess the mine’s reserves and determine its future viability. “This arrangement safeguards jobs and allows for a thorough evaluation of the mine’s potential,” the statement noted.
In parallel, the processing of existing stockpiles will continue under the oversight of a joint management team made up of representatives from both the Government of Ghana and Goldfields Ghana. “The two parties will work in good faith to secure a successful transition and eventual transfer of a viable mine to Ghanaian ownership,” the statement emphasized.
The Government and Goldfields have also committed to advancing discussions on the renewal of the Tarkwa mine lease, which is due in 2027. Both parties affirmed their shared goal of enhancing Ghana’s standing as a leading destination for mining investment.
“The Government of Ghana and Goldfields pledge to work together to enhance Ghana’s potential in the mining sector as a favourable investment destination,” said Hon. Felix Kwakye Ofosu, Spokesperson to the President and Minister for Government Communications.
Background
In April 2025, the Ghana government declined to automatically renew the mining lease for Damang, marking a departure from previous practices. This decision led to the government assuming operational control of the mine after the lease expired on April 18, 2025 .
However this sparked disagreements from somestakeholders including the Ghana Mine Workers Union who cited potential job losses for empolyees of the mine.
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