The Government of Ghana and Gold Fields Ghana Limited have signed the Damang Mine Transition Agreement, a major deal that will revive mining operations at the Damang Mine for 12 months, protect local jobs, and prepare for the eventual transfer of the mine to full Ghanaian ownership.
The move is aimed at sustaining mining operations and promoting local participation in Ghana’s mineral wealth.
The Damang Mine Transition Agreement, announced on April 23, 2025, establishes a 12-month transitional phase with a new mining lease granted to Goldfields’ subsidiary, Abosso Gold Fields Limited.
The lease, pending ratification by Parliament in May 2025, will allow Gold Fields to resume open-pit mining at the Damang site while conducting feasibility studies to evaluate remaining reserves and the potential for extending the mine’s life. This move is expected to sustain hundreds of direct and indirect jobs in the Western Region.
A joint management team, made up of representatives from the Government of Ghana and Goldfields, will supervise the transition. The team will oversee the continued processing of existing stockpiles and ensure operations remain aligned with national mining standards, environmental protocols, and community expectations.
“This agreement demonstrates our shared commitment to safeguarding jobs, sustaining operations, and ensuring that our national resources benefit all Ghanaians,” the statement said.
The Damang Mine Transition Agreement is viewed as part of a larger effort to deepen Ghana’s involvement in the mining sector. The government has emphasized that local content, value addition, and ownership of mineral resources remain high on its agenda. The partnership with Goldfields, one of the leading mining companies operating in the country, is therefore strategic.
As part of the deal, both parties have agreed to begin discussions on the renewal of the lease for the Tarkwa Mine, which is due to expire in 2027. The aim is to ensure continuity in operations and further explore how Ghana can take on a larger ownership role in its key mining assets.
Industry experts say the Damang agreement could become a model for future public-private partnerships in the extractive sector. With its blend of foreign investment, government oversight, and community inclusion, it aligns with global calls for more equitable and sustainable natural resource management.
Communities surrounding the Damang Mine are also expected to benefit from corporate social responsibility initiatives, job opportunities, and infrastructure development. Local leaders have welcomed the news, citing the positive economic ripple effects such an agreement will have on small businesses, schools, and local services.
The Ghana Chamber of Mines has also lauded the deal, noting that it reinforces the country’s image as a stable and attractive mining destination. “This transition agreement is not just about extending operations—it’s about building trust, protecting livelihoods, and reinforcing Ghana’s global mining reputation,” a Chamber official remarked.
With the Damang Mine Transition Agreement now in place, Ghana is taking a decisive step toward ensuring its mineral resources contribute meaningfully to national development while maintaining an investor-friendly environment.
Source: myinfotoday.com
