The Minister for Lands and Natural Resources, Emmanuel Kofi Armah Buah, has defended the government’s decision not to renew the mining lease of Goldfields Ghana’s operations at the Damang Mines.
The lease, which ends on April 18th, 2025, lasted for 30 years.
However, the government announced this week that it plans not to renew the mining lease of Goldfields Ghana, which operates the Damang Mines.
Addressing a press conference in Accra on Wednesday, April 16, Armah Buah said that Goldfields Ghana failed to meet expectations.
Goldfield has failed to allocate any budget for exploration at Damang for the past two years. In essence, the company was not prepared, as required by law, to expend resources to conduct exploration activities to discover new ore bodies or convert the mineral resources into mineral reserves to support a mining programme or operation.
“This lack of investment raises serious concerns about the company’s commitment to sustainable mining practice and the long-term viability of this particular mine,” he stated.
Similarly, the Deputy Chief Executive Officer of the Minerals Commission, Isaac Tandoh, on April 15, revealed that Gold Fields Limited failed to comply with explicit instructions to engage the Commission regarding the extension.
And for that matter, Ghana is ready to take over and operate the Damang Mine.
Tandoh further revealed that all discussions held so far point to a state-led operation of the Damang Mine after Gold Fields’ exit.
In all the meetings I have been in and all the discussions I have had, we are looking at the state running the mine. No individual will be made to do that,” he added.
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