The Mahama government, has announced plans to develop a homegrown framework for managing the country’s natural resources within the coming months.
This decision, follows Gold Fields’ exit from the Damang mine after the expiration of a 30-year lease, which the government opted not to renew
. However, an interim agreement has been reached between the government and Gold Fields for joint management of the mine for one year, pending parliamentary ratification.
Speaking at a ministerial retreat yesterday, Thursday, 24 April 2025, President John Dramani Mahama, stressed the importance of increased Indigenous participation in the management of the country’s natural resources.
The President, said such interventions were essential to mobilise resources for the development of mining communities.
“We had a little issue which we have now resolved with one of our mining companies whose lease expired after 30 years. It was our desire to take over and utilise Ghanaian expertise to explore that resource and ensure the benefits remain within our country.
Happily, we reached an amicable solution to work together to transition that mine to Ghanaian ownership. But it brings me to the broader issue—we must have an indigenisation programme for taking greater control of our natural resources.
Over the next few months, we will develop a policy on indigenous participation in natural resource exploitation. We are not going to seize anyone’s concession, but whenever a lease is due for renewal, we will negotiate to ensure increased Ghanaian participation, so we can raise the resources to bring prosperity to our people.”
This initiative signals a bold step toward national control and accountability in Ghana’s extractive industry.
The announcement comes after the formal end of Gold Fields’ 30-year lease at the Damang mine.
Although the company appealed for a renewal, the government declined to extend the lease. To ensure continuity, a one-year co-management agreement, has been established between the two parties, subject to parliamentary approval.
During this period, both parties will jointly operate the mine while laying the foundation for a full transition to government ownership.
President Mahama, declared that Ghana was ready to take full charge of its natural wealth:
“This marks a new era in how we manage and benefit from our natural resources. The time has come for Ghanaians to own and lead the development of their resource sectors.”
The upcoming framework aims to redefine governance in Ghana’s mining industry by prioritising national interests, enhancing transparency, and ensuring equitable distribution of resource wealth.
The Damang mine transition, will serve as the first major test of this new policy direction, with stakeholders observing closely as Ghana moves to reclaim control over one of its key mining assets.
From Johannesburg, Gold Fields Limited (JSE, NYSE: GFI) expressed its satisfaction with the agreement reached with the Government of Ghana on a constructive way forward for the Damang mine, which it believes will benefit employees, local communities, and the people of Ghana.
The company outlined the terms of the agreement as follows: The Government of Ghana will issue a new 12-month mining lease to Gold Fields for the Damang mine. This lease is subject to ratification by Parliament when it reconvenes on 16 May 2025.
During this transitional period, Gold Fields will recommence mining activities in line with its submitted mining programme, creating new jobs and safeguarding current employment.
The company, will resume open-pit mining and process existing surface stockpiles, while securing the necessary permits with the support of the Ministry of Lands and Natural Resources.
Gold Fields, will also finalise a detailed bankable feasibility study to determine the potential extension of the Damang mine’s life and continue infill drilling to improve mineral resource confidence.
In line with the government’s objective of enhancing local participation in the mining sector, a joint asset transition team will be established. This team, made up of representatives from both Gold Fields and the government, will appoint advisors and work collaboratively to ensure a successful transfer of ownership to the people of Ghana.
Both parties have committed to principles of transparency, sound governance, and open engagement.
Gold Fields also confirmed its continued operations at the Tarkwa mine remain unaffected by the developments at Damang and that preparations will soon begin for the renewal of the Tarkwa lease, due in 2027.
President Mahama, remarked that “This is an important day for Ghanaian mining as we strengthen our partnership with Gold Fields. Increased local participation and ownership in Ghana’s mining industry is a key part of the government’s commitment to creating wealth for Ghanaians.
Gold Fields, has a long and positive history in Ghana, and we are pleased to be working with them to safely and sustainably operate the Damang mine and ultimately transition it to the people of Ghana. Ghana remains open for business and welcomes investment.”
Yunus Suleman, Chairman of the Gold Fields Board, added: “Gold Fields has been operating in Ghana for more than 30 years and has built a strong record of economic and social contribution. We remain committed to supporting Ghana’s mining expertise, development, and shared prosperity.”
A statement issued by Presidential Spokesperson and Minister for Government Communications, Felix Kwakye Ofosu (MP), reiterated the transitional arrangements and emphasised both parties’ commitment to a smooth handover of the Damang mine and future collaboration on Tarkwa’s lease renewal.