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 for its operations at the Damang Mines.
The 30-year lease, which expires on April 18, 2025, will not be extended, according to an announcement made by the government earlier this week.
Addressing a press conference in Accra on Wednesday, April 16, Minister Armah Buah stated that Goldfields Ghana had not lived up to the expectations required to warrant a lease renewal.
“Goldfields has failed to allocate any budget for exploration at Damang for the past two years. In essence, the company has not demonstrated a willingness, as mandated by law, to invest in exploration activities aimed at discovering new ore bodies or converting mineral resources into reserves to sustain mining operations,” he said.
He emphasized that this lack of investment raises serious concerns about the company’s commitment to sustainable mining and the long-term viability of the Damang mine.
Supporting the Minister’s position, the Deputy CEO of the Minerals Commission, Isaac Tandoh, revealed on April 15 that Goldfields Limited also failed to comply with direct instructions to engage with the Commission concerning the lease 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.
