Parliament has approved a one-year transitional mining lease between the Government of Ghana and Abosso Goldfields Limited to continue gold mining operations at the Damang Mine in the Wassa West District of the Western Region.
The lease, which comes after the expiration of the previous agreement on April 18, 2025, will now run until April 2026. The new arrangement is strictly nonrenewable and prohibits any future extension, transfer, mortgage, or related transactions beyond the stated expiry date.
Initially, the government had indicated its intention to assume control of the Damang operations after the lease expired. However, after further consultations, it agreed to a transitional one-year extension under strict terms.
Abosso Goldfields Limited, a subsidiary of Gold Fields Limited—the world’s seventh-largest gold producer—operates the Damang Mine. Gold Fields also operates the Tarkwa Mine under its Gold Fields Ghana unit. Gold Fields owns a 90% stake in Abosso Goldfields, with the Government of Ghana holding the remaining 10%.
According to Gold Fields’ 2024 annual report, no mineral reserves have been declared at the Damang Mine, and actual mining operations ceased in 2023. Since then, the company has only processed stockpiled ore and indicated in its 2023 Mineral Resources and Reserves Supplement that no exploration was planned for 2024.
The absence of new reserves and the company’s decision not to invest in exploration suggest limited long-term interest in the Damang site. In 2025, the company is expected to continue processing stockpiles in line with the existing life-of-mine plan.
These factors contributed to the government’s decision to approve only a limited one-year transitional lease, which is seen as a final concession before a potential takeover or closure of operations.
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