The Government of Ghana and Gold Fields have reached a transitional agreement regarding the Damang mine, marking a resolution to their recent dispute.
A transitional 12-month mining lease will be issued to a Gold Fields subsidiary, pending parliamentary ratification in May 2025.
During this period, Gold Fields will resume open-pit mining and conduct feasibility studies to assess Damang’s remaining reserves and mine life.
The dispute began when Ghana’s Ministry of Lands and Natural Resources rejected Gold Fields’ lease renewal application, citing regulatory shortcomings, including undeclared mineral reserves and lack of a detailed technical plan.
The government assumed operational control on April 17, 2025, breaking the tradition of automatic lease renewals.
While the Africa Centre for Energy Policy (ACEP) had warned against abrupt nationalization, urging transparency to maintain investor confidence, the government framed its actions as part of an “economic reset” to ensure Ghana benefits more from its mineral resources.
The settlement allows Gold Fields to continue limited operations while the government retains oversight. The outcome balances investor interests with Ghana’s resource sovereignty, though long-term implications for foreign mining investment remain a topic of debate.
