In a historic and consequential decision, the Government of Ghana has rejected the application by Gold Fields Limited to renew the 30-year mining lease for the Damang Mine, held by its subsidiary, Abosso Goldfields Limited. The lease, which was originally granted on April 18, 1995, expired on April 18, 2025. According to government and a formal statement released by Gold Fields Ghana, the Minerals Commission had earlier decided not to extend the lease, supposedly ending one of the longest continuous private mining operations in the country.
Gold Fields Limited, the seventh-largest gold producer globally, operates two key mines in Ghana—Tarkwa and Damang. The decision not to renew the Damang lease marks a significant shift in Ghana’s resource governance and underlines an evolving posture toward what officials call “resource indigenization”. It is also a major move toward resetting the economic power dynamics between multinational mining corporations and host nations.
The implications are huge. In 2024, Ghana contributed 32% of Gold Fields’ total gold output, reflecting the country’s strategic importance to the South African mining giant. The Damang Mine, although inactive in terms of new gold extraction since 2023, continued processing stockpiles, with the company making no significant investment in exploration to prove fresh reserves. This led the Minerals Commission to conclude that Gold Fields had neither the intent nor the operational basis to extend the mine’s life. Instead, the government appears ready to repurpose or repossess the concession as part of a larger plan to reclaim national control over its mineral resources.
Historical Legacy of the Damang Mine and the Shift Toward Indigenization
The Damang Mine has a rich and long-standing legacy that dates back to the late 19th century. Originally operational from 1882 to 1956, it was later re-explored by Ranger Exploration and its partners starting in the late 1980s. Significant deposits were discovered, and in 1995, the Ghanaian government granted a 30-year lease to begin new operations. Mining at Damang officially commenced in August 1997, with the first gold pour happening in November of that same year.
In 2001, Gold Fields and Repadre Capital Corp acquired Ranger’s 90% stake, later consolidated into full control by Gold Fields. Since then, Gold Fields has maintained a 90% shareholding, with the Government of Ghana retaining a 10% carried interest, a standard arrangement in many mining ventures. Over time, Damang, together with Tarkwa, became pillars of Ghana’s gold mining output, contributing significantly to the country’s GDP and foreign exchange earnings.
However, the last few years have shown waning interest from Gold Fields in rejuvenating the Damang concession. No new reserves were declared in the company’s 2024 annual report, and the firm revealed no intentions to conduct exploration activities in 2024. This lack of forward planning triggered concerns at the Minerals Commission and raised questions about the future viability of the mine under current management.
Deputy CEO of the Minerals Commission, Isaac Andrews Tandoh, reiterated that the era of indefinite lease extensions is over. “Thirty years is enough,” he declared, highlighting a policy shift. As such, the government wants more value retained within the country—through jobs, infrastructure development, and Ghanaian ownership—not just profit extraction by foreign multinationals.
Lessons from the Past: The 1970s Nationalization Experiment
Ghana’s flirtation with state-led mining is not new. In the 1960s and 70s, under President Kwame Nkrumah and his successors, the country nationalized several sectors, including mining, through entities like the Ghana State Gold Mining Corporation (GSGMC). The logic was patriotic and appealing: own the nation’s wealth, develop the local economy, and reduce foreign dominance.
However, these noble ideals met the harsh reality of economic mismanagement. The nationalized mines suffered from poor technical expertise, bloated public payrolls, underinvestment, and inefficiencies. As commodity prices fluctuated, the absence of strong financial buffers and strategic planning left the state-owned mines vulnerable.
By the early 1980s, Ghana’s mining sector was in decline. To reverse the situation, the country implemented a structural adjustment program and opened the sector to foreign direct investment (FDI). Companies like Newmont, AngloGold Ashanti, and Gold Fields entered with capital and technical know-how, revitalizing production and turning Ghana into Africa’s top gold producer by 2019.
Today, as Ghana reclaims control over Damang, the parallels with the 1970s are striking. However, the government insists this is not a blind return to old models but a more strategic effort to correct historical imbalances and extract greater value from its mineral wealth.
A New Dawn or a Risky Gamble?
The government’s refusal to renew Gold Fields’ lease for the Damang Mine is being hailed by some as a bold assertion of resource sovereignty. In his interview, Isaac Andrews Tandoh dismissed suggestions of nationalization, instead advocating for “indigenization”—the prioritization of Ghanaian interests and involvement in the mining sector.
Tandoh’s assertion is clear: “If you’ve made your profits over three decades, let’s have a conversation about value for Ghanaians. Let’s re-negotiate, or hand it back.” This sentiment echoes a broader regional shift, as countries like Burkina Faso and Mali have also reasserted control over their mineral wealth.
However, asserting national control is only one side of the coin. Effective management and execution are crucial. Historically, Ghana has experienced both the highs and lows of state-led mining policies. The 1960s and 1970s were characterized by waves of nationalization, which initially promised sovereignty and self-reliance. But underinvestment, mismanagement, and corruption led to the rapid decline of the industry. By the early 1980s, Ghana had fallen from its top-five status in global gold production, and mining output dropped dramatically.
The reforms of the mid-1980s and early 1990s reversed this trend, leading to liberalization and the welcoming of foreign investors. Ironically, these reforms also led to extensive foreign ownership of Ghana’s mineral wealth. The Damang Mine lease rejection thus marks a full-circle moment—a return to the pursuit of Ghanaian control but with the benefit of hindsight.
The challenge ahead is this: Can Ghana execute its vision better this time; can it avoid the mistakes of the past, when national control led to inefficiency and missed economic opportunities?
Will Ghana Get It Right This Time?
It is easy to celebrate policy pronouncements, but policy implementation is where success or failure is determined. If the government hopes to turn Damang into a showcase for Ghanaian-led mining success, then strategic planning, technical competence, and proper financing will be indispensable.
The Minerals Commission’s rationale for rejecting the lease rests on three core pillars: Failure to Invest in Exploration: Gold Fields is accused of failing to live up to its obligations to continuously invest in mineral exploration, a key requirement for maintaining a long-term lease; No Declared Reserves: The company declared no new reserves, implying that the mine had reached its end of life—or that Gold Fields lacked the appetite to continue active mining; and Lack of a Technical Plan: The lease renewal application reportedly lacked a concrete technical program to extend the mine’s operational life.
Each of these points forms a credible basis for lease termination. However, the absence of a transparent, strategic blueprint on what the government plans to do with the mine going forward leaves room for skepticism. Is there a Ghanaian mining entity ready and equipped to take over? Will the state partner with private local firms, or repackage the asset for new foreign investors under better terms?
Some have raised concerns about possible political interference, corruption, or lack of technical expertise. There is also speculation that the decision may be aimed at reshuffling asset ownership in favour of politically-connected individuals or firms. If the lease rejection becomes a pretext for patronage, the potential benefits to national interest will be lost.
As the dust settles on the Damang decision, Ghana finds itself at a crossroads. The government has spoken boldly about ending neo-colonial arrangements and ensuring Ghanaians benefit directly from their resources. But it must now prove that it has the institutional capacity, strategic foresight, and integrity to deliver. To avoid repeating past mistakes, Ghana must pursue a balanced mining policy framework.
With over a century of mining history, Ghana has both the scars and the experience to chart a more self-determined path. What remains is whether it can do so without compromising transparency, investment confidence, or economic efficiency. The world is watching! Time will tell if Ghana rises to the occasion.
The 12-Month Lifeline
Despite initial stance, the government of Ghana has since relaxed its position a little with Gold Fields Limited scoring a major breakthrough, securing a critical 12-month operational lease for its Damang mine after intense negotiations with the Government of Ghana. The deal, seen as a bold step toward reviving the mine’s fortunes, clears the way for mining activities to resume — and for confidence to return.
The new lease, subject to Parliamentary ratification in May 2025, gives Gold Fields the green light to restart open-pit mining based on a pre-approved plan, while processing existing surface stockpiles. More importantly, it buys time for a deeper play: a detailed bankable feasibility study, set for completion by the end of 2025, which could redefine Damang’s long-term prospects.
But this isn’t just about digging deeper. A key part of the agreement focuses on transitioning the Damang asset into Ghanaian hands. A joint transition team— with representatives from both Gold Fields and the government— will drive the handover, underpinned by commitments to transparency and strong governance.
With the new deal in place, Gold Fields isn’t just keeping Damang alive — it’s setting the stage for a broader story of local ownership, renewed jobs, and shared prosperity.