5 days Ago By News Ghana
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/ghanas-damang-mine-future-hinges-on-local-takeover-amid-lease-dispute/The future of Ghana’s Damang Gold Mine remains uncertain as a local mining firm considers bidding for the concession following the government’s refusal to renew Gold Fields Ghana’s lease, set to expire in April 2025.
The decision, attributed by officials to unmet regulatory requirements, has sparked debate over transparency, foreign investment, and the role of domestic companies in Ghana’s mining sector.Gold Fields, which has operated the mine since acquiring it from Australia’s Ranger Minerals in 2002, disputes the government’s claims of noncompliance. Industry sources close to the negotiations argue the company adhered to Ghana’s Minerals and Mining Act, noting that processing stockpiled ore a standard industry practice was misinterpreted as disengagement.
The Johannesburg-based firm’s shares fell 6.3% this week despite rising global gold prices, reflecting investor unease over the stalemate.A Ghanaian contractor with existing ties to the mining sector is reportedly preparing to bid for the Damang lease if talks between Gold Fields and the government collapse.
The move aligns with growing public pressure for local control of mineral assets, amplified by recent scrutiny of foreign acquisitions like Newmont’s Akyem Mine sale to a Chinese firm. However, analysts caution that abrupt policy shifts risk perceptions of nationalization, particularly after Burkina Faso’s mining sector reforms drew regional scrutiny.Abdul-Moomin Gbana, General Secretary of the Ghana Mineworkers’ Union, urged swift resolution to protect jobs and stability.
“Arbitrary lease denials without clear processes send alarming signals to investors,” he said, emphasizing that over 3,000 direct jobs and countless ancillary livelihoods in the Western Region hang in the balance. The government has yet to detail its regulatory concerns, though the Lands Ministry plans a press briefing this week to address mounting tensions.Ghana’s mining sector contributes 10% to national GDP and nearly 40% of export earnings, making the Damang dispute a litmus test for balancing economic sovereignty with foreign capital reliance.
While empowering local firms aligns with broader development goals, industry experts stress that domestic companies often lack the technical capacity and financing to sustain large-scale operations without foreign partnerships.The situation mirrors challenges across resource-dependent African economies, where governments grapple with demands for local participation amid competitive global markets. Ghana’s approach to the Damang case could influence investor confidence regionally, particularly as gold prices surge and mineral-rich nations seek to leverage assets for economic transformation.
With worker protests looming and global markets watching, the government faces mounting pressure to clarify its strategy a decision that will resonate far beyond the borders of Damang. News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.
gh/ghanas-damang-mine-future-hinges-on-local-takeover-amid-lease-dispute/.
