The Government of Ghana’s recent decision to reject the lease extension application of Gold Fields Ghana Limited for its Damang Main Mining Lease, set to expire on April 18, 2025, has ignited a firestorm of debate across Ghana’s mining landscape.
In a statement issued by a Mining Consultant, Ing. Wisdom Edem Gomashie, pressing concerns have been raised about transparency, legal compliance, community impact, and potential reputational damage to Ghana’s global mining standing.
Gold Fields, a key player in Ghana’s mining sector, employs more than 1,500 people at its Damang operations—75% of whom are drawn from host communities.
With women making up 12% of the workforce and local contractors forming the backbone of operations, the lease rejection has set off alarm bells for the economic stability of the area.
A Call for Transparency
Ing. Gomashie’s critique centers on the government’s silence surrounding the regulatory grounds for the lease denial.
Referencing the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176), he questions whether due process was followed. Did Gold Fields submit their application on time? Were there any legal violations or misinformation?
“Was the extension application not submitted 90 days prior to the expiration of the existing lease? A check shows it was submitted in December 2024,” Gomashie noted, urging authorities to publicly clarify their position.
He further questioned whether the rejection is a prelude to awarding the lease to new, possibly pre-selected, interests under the guise of a tendering process, which he warns could fuel perceptions of state capture and elite cronyism.
Investor Confidence at Stake
The implications of this decision stretch beyond local employment. Ghana’s international investment appeal could take a hit.
Ing. Gomashie drew comparisons with Tanzania, where similar decisions led to massive financial penalties through international arbitration—over $200 million in total. Should Gold Fields seek redress under the Minerals and Mining Act, Ghana could face similar judgments.
“The message this sends is worrying,” Gomashie warns. “It threatens the confidence of multinational firms who may now perceive Ghana’s regulatory environment as unstable and politically influenced.”
A Transparent Path Forward
Rather than opposing government intervention in mining agreements, Gomashie calls for a more open and competitive approach.
If the government seeks to revise fiscal terms or promote indigenous ownership, he believes it must be done transparently—without excluding capable Ghanaian or multinational players unfairly.
He proposes:
- A fair tendering process if the lease is officially vacated.
- Inclusion of Gold Fields in the bidding process.
- Broader engagement with community stakeholders.
- Protection of the 1,500 workers whose jobs hang in the balance.
Highlighting recent challenges faced in the transition of the Bogoso-Prestea mine to Future Global Resources (FGR), Gomashie emphasized the need for strict scrutiny of financial and technical competence in future mine takeovers.
A Test of Governance
“This goes beyond Gold Fields,” he said. “It is about whether our mining sector is governed by law, equity, and institutional strength—or by narrow interests.”
He calls on the Minister for Lands and Natural Resources, Hon. Emmanuel Armah Kofi Buah, the Ghana Chamber of Mines, and Parliament’s Lands and Natural Resources Committee to investigate and provide clarity.
“Silence,” he warns, “will only deepen suspicions and weaken confidence in Ghana’s mining governance framework.”
As Ghana navigates the complexities of resource management and national interest, the Damang lease rejection will serve as a defining test of the country’s commitment to transparency, fairness, and investor trust.
Source: myinfotoday.com
