Adnan Adams Mohammed
The Minerals Commission has defended the government’s decision to assume operational control of the Aboso Goldfields Limited’s Damang mine, from Goldfields Ghana as the local subsidiary of the South African multinational has failed to meet lease renewal requirements.
The decision, announced by the Lands Ministry last week, has since ignited debate by stakeholders in the business and mining sectors.
A senior official of the Commission has described Gold Fields’ business style as exploitative, stressing that instead of reinvesting in Ghana, the company chose to acquire assets in other countries. However, the regulator of the mining industry believes Ghanaian-owned companies now have the financial muscle and technical expertise to run large-scale mining operations challenging long-held assumptions that capital constraints necessarily leave the sector in the hands of foreign multinationals.
“Unlike those days when people couldn’t access funding, it’s a thing of the past,” the Minerals Commission Deputy CEO, Isaac Andrews Tandoh said in an interview in reaction to the government’s unexpected decision. “Now we have groups and companies in Ghana—look at BCM, Engineers and Planners, Rockshore—they’re all raising hundreds of millions of dollars to finance equipment and operations.”
He cited major deals involving local firms to underscore his point.
“Engineers and Planners signed a US$250 million deal with Caterpillar. BCM had strong Caterpillar financing. Another company has over US$100 million in financing from Leibher. Rockshore and is buying equipment worth hundreds of millions to work in Ghana,” he said.
Mr. Tandoh questioned the logic of keeping strategic mineral resources under the control of foreign entities that, in his view, prioritize profit repatriation over local development.
“Last year alone, Tarkwa and Damang Mines made over US$600 million in profit. How much of that stayed in the country? Your guess is as good as mine,” he remarked.
“We’ve gotten to that point where this cannot continue. Ghanaians deserve better.”
According to him, the government has treated Gold Fields more than fairly, offering them generous terms that go beyond a typical mining lease.
“After giving the 30-year lease to Gold Fields, the government even bettered the situation for them with a development agreement,” he revealed.
“That agreement waived a number of their tax liabilities, especially on fuel. But instead of using their profits to reinvest in Ghana, Mr. Tandoh claims the company focused on overseas acquisitions.
“They were busy buying mines in Canada and Chile, Osisko and others. And they can’t tell me that wasn’t from Ghana’s profits,” he said.
“It’s difficult to move money out of Australia, but in Ghana, you can move it freely.”
The Minerals Commission boss insists the government isn’t out to kick foreign investors out of the mining sector.
“We’re not saying we’re going to chase all foreign mining companies away,” he clarified.
“We’re going to support them to do their work. But it must be done in a way that serves the people of this country.”
He expressed particular concern that in the final two years of their lease, Gold Fields resorted to treating stockpiles rather than fully investing in mining operations.
“That’s just taking free cash from Ghana without actually working. This cannot continue,” he asserted.
The takeover of the Damang mine comes at a time when the government is under pressure to ensure that Ghana derives greater value from its natural resources.
Mr Andrews Tandoh’s remarks signal a more assertive posture aimed at protecting national interests while still encouraging responsible foreign participation.
Aboso Goldfield’s current lease expired on April 18, and the company had reportedly applied for a lease extension in December 2024. However, the government intends to take over the operations and has instructed its parent, Goldfields of South Africa – a leading global gold producer – to vacate the site by April 25, 2025.
Meanwhile, several major stakeholders in the mining industry have expressed their satisfaction with government’s decision.
Among such stakeholders is a group called ‘Concerned Youth of the Damang Site Catchment Area’ which has expressed their support for the government’s decision not to renew the mining lease of Abosso Goldfields Limited (AGL) in Damang.
The Convener of the Concerned Youth of the Damang Catchment Area, Emmanuel Afful said: “You cannot be in a town for three decades and leave it looking abandoned. There’s no hospital, no functional water systems in some communities, and the same dusty, pothole-ridden roads. Compare Damang to Kenyasi or Akyem, where other mining companies have built hospitals and better infrastructure. Three decades should have transformed Damang, but instead we got neglect.”
Eric Garibor, another convenor of the group indicated that, Goldfields failed to prioritize the welfare of locals despite promising to do so.
“This wasn’t a partnership. It was extraction with exclusion. Now that they are gone, let us chart a new course. A Ghanaian success story is possible. We’ve seen it at Awaso. Let’s do the same in Damang,” said Eric Garibor.
Also, the Ghana Extractive Industries Transparency Initiative (GHEITI) and the Minerals Commission have already backed this move by the government, highlighting the opportunity to maximize national benefit from the mineral resources.
The Chairman of GHEITI, Dr. Steve Manteaw, welcomed the decision, noting that the country must prioritize value for money in lease agreements.
“There have been instances where certain expired leases were renewed for the holders to only flip, sell the mine and make huge profits which should have come to the state. I am not saying that is the reason for the decision of the Minerals Commission in this particular instance – but I won’t be surprised – but let’s believe that the regulator is working in the best interest of the state. I don’t believe there’s any cause for worry,” he explained.
However, the Africa Centre for Energy Policy (ACEP) has called on the Ghanaian government to suspend plans to take over the gold mine, urging a transparent and legally guided approach to resolving its ongoing dispute with Abosso Goldfields Limited (AGL).
In a statement issued last week, ACEP’s Executive Director, Benjamin Boakye, advised the government to exercise restraint and re-engage AGL in dialogue.
“ACEP calls for a halt in the operation to expropriate the mine tomorrow. The government needs to exercise restraint, renew dialogue, and pursue a legally guided resolution that protects the interests of both the state and investors,” Boakye stated.
Boakye cautioned that abrupt and disputed actions could have far-reaching implications for Ghana’s mining industry.
“The government’s approach to this matter should reflect diligence, legal compliance, and a genuine commitment to Ghana’s long-term mineral wealth. A rushed and disputed decision not only risks international litigation and reputational damage, but also undermines investor confidence and the rule of law.
But 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’s operations at the Damang Mines.
“Goldfield has failed to allocate any budget for exploration at Damang for the past two years. In essence, the company was not prepared, as required by law, to expend resources to conduct exploration activities to discover new ore bodies or convert the mineral resources into mineral reserves to support a mining programme or operation”, explained Armah Buah, addressing a press conference in Accra last week, noting that Goldfields Ghana failed to meet expectations.
“This lack of investment raises serious concerns about the company’s commitment to sustainable mining practice and the long-term viability of this particular mine,” he stated.
Similarly, the Deputy Chief Executive Officer of the Minerals Commission, Isaac Tandoh, revealed that Gold Fields Limited failed to comply with explicit instructions to engage the Commission regarding the extension.
He asserted that 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.
