Paragraph 1: The government of Ghana has assumed operational control of the Damang Gold Mine, previously operated by Abosso Gold Fields Limited (AGL), following the expiration of AGL’s 30-year lease and the subsequent rejection of their renewal application. This action, taken under the authority of the Minerals and Mining Act, 2006 (Act 703), signifies a significant shift in Ghana’s mining policy, moving away from automatic lease renewals and towards a more rigorous evaluation process aimed at maximizing national benefits from the country’s mineral resources. The government emphasizes that this decision was not arbitrary but based on well-founded reasons, primarily AGL’s failure to meet key requirements for lease renewal.
Paragraph 2: Central to the government’s decision is AGL’s failure to declare verifiable mineral reserves as required by Regulation 189 of the Minerals and Mining Act (Licensing) Regulation, 2012 (L.I 2176). This regulation mandates that lease renewal applications include a comprehensive technical report and a mining operations program, including verifiable mineral reserve data to justify the extension. The government asserts that AGL’s 2024 Annual Report, published shortly after the rejection notice, vindicated their position regarding the absence of reserves. This lack of declared reserves prevented the Minerals Commission from recommending the lease extension, a critical step in the renewal process.
Paragraph 3: Further solidifying the government’s decision was AGL’s failure to submit a detailed technical program outlining past and future mining activities. This omission prevented the government from assessing the mine’s historical performance and proposed future plans, essential information for informed decision-making regarding the mine’s long-term viability and responsible operation. The absence of a detailed technical program signaled a lack of transparency and prevented a comprehensive evaluation of AGL’s operational strategy.
Paragraph 4: Adding to the concerns was AGL’s failure to allocate any budget for exploration activities at the Damang mine over the preceding two years. This lack of investment in exploration, a critical component of sustainable mining practices, raised serious questions about AGL’s commitment to the mine’s future and the discovery of new ore bodies. Exploration is essential for converting mineral resources into mineral reserves, thereby ensuring the long-term viability of mining operations. The absence of exploration expenditure further supported the government’s decision to assume control.
Paragraph 5: The government has pledged a seamless transition of operations, prioritizing job security and honoring existing valid service contracts. All essential services, including security, healthcare, fuel supply, and camp management, will continue uninterrupted. The government will also uphold all valid contracts, ensure timely wage payments, and maintain operational continuity. A dedicated transition team will engage directly with workers, contractors, and community leaders to address concerns, provide updates, and facilitate a collaborative approach to the transition. The government is committed to transparency and open communication throughout this process.
Paragraph 6: Emphasizing a commitment to local content, the government will prioritize local workforce retention and community-based enterprises. This aligns with Ghana’s Local Content Policy, ensuring that opportunities in transport, labor, and auxiliary services primarily benefit businesses within the Damang catchment area. Strict protocols will be enforced to guarantee safety, orderly operations, and the protection of all assets during the transition. The government welcomes continued collaboration with international partners while maintaining a firm stance on prioritizing the long-term needs of its citizens. This transition, according to the government, marks a new chapter for the Damang Mine, one focused on Ghanaian control and benefit, driven by fairness, innovation, and a commitment to national progress, while adhering to Ghana’s mining laws and international investment agreements.
