Parliament has approved a one-year transitional mining lease agreement between the Government of Ghana and Abosso Goldfields Limited for gold mining operations at Damang in the Wassa West District of the Western Region.
The lease, which follows the expiration of the previous agreement on April 18, 2025, is set to expire in April 2026 and explicitly prohibits any further extension, transfer, mortgage, or related transactions beyond the said date.
Initially, the government had planned to take over operations after the expiration of the original lease. However, following further consultations, it agreed to extend the arrangement by one additional year under strict non-renewable terms.
The Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah in Parliament on Friday, August 1, 2025 moved the motion for the ratification of the agreement.
Meanwhile, three lawmakers – Minority Chief Whip Frank Annoh-Dompreh, Nana Asafo Adjei-Ayeh, and Habib Iddrisu – have filed a lawsuit against the Attorney General, Minister for Lands and Natural Resources and Abosso Goldfields Ghana Limited.
They are challenging what they describe as an unlawful mining lease agreement. Filed on Wednesday, July 3, the suit accuses the state of breaching Article 268(1) of the 1992 Constitution by granting a 12-month Temporary Lease Agreement to Abosso Goldfields without what they say is “prior parliamentary approval.”
On April 17, government assumed operational control of the Damang Mine, a concession held by Abosso Goldfields Limited, a subsidiary of Gold Fields Limited.
The move follows the rejection of the application by Gold Fields Limited to have its 30-year mining lease at the facility extended for another 30 years.
The government’s action, according to a statement by the Ministry of Lands and Natural Resources, represented a crucial step in Ghana’s economic reset, ensuring that gold reserves directly benefited citizens and contributed to long-term prosperity, easing uncertainty over the future of over 1,300 workers of the company.
However, on April 23 2025, the Government of Ghana and Goldfields Ghana Limited agreed on a transitional plan for the Damang Mine.
The operational modalities of the transition involve issuing a new 12-month mining lease to Goldfields’ subsidiary, Abosso Goldfields Limited, pending parliamentary ratification in May 2025.
A statement issued by Minister of Government Communications, Felix Kwakye Ofosu on April 23, 2025 said a new arrangement has been outlined for Goldfields to resume open-pit mining during the transition period, safeguarding jobs and conducting feasibility studies to establish Damang’s reserves and mine life.
A joint management team composed of representatives from government and Goldfields will supervise the processing of existing stockpiles and ensure a smooth transition.
The two parties are expected to work in good faith to secure a successful transition and eventual transfer of a viable mine to a local ownership.
“Both parties have agreed to advance discussions in good faith on the renewal of the lease for the Tarkwa mine, due in 2027, and pledged to work together to enhance Ghana’s potential in the mining sector as a favourable investment destination,” the statement noted.
Source: myghanadaily
