Ghana Government Takes Control of Damang Gold Mine Amid Push for Resource Sovereignty

Gold Fields began operations at Damang in 1997 under a 30-year mining lease. Over the years, while the company extracted millions of ounces of gold, concerns grew within communities and among policymakers about the true benefits reaching Ghanaians. Complaints centered on limited local development, environmental degradation, and a lack of transparency in operations.

As Ghana’s economy faces rising debt and currency depreciation, the government has shifted its strategy—emphasizing national control, local beneficiation, and economic sovereignty. The Damang mine has now become a symbolic battleground in this broader transformation.

On April 16, 2025, the Ministry of Lands and Natural Resources officially announced that the government would assume full control of the Damang Gold Mine. This decision followed the rejection of Gold Fields’ application to renew its lease, which is set to expire on April 18.

According to the Ministry, the company failed to declare verifiable mineral reserves in line with regulatory standards. The lease renewal application also lacked a comprehensive technical report detailing operational performance and future plans. Furthermore, Gold Fields had not allocated a budget for exploration at the mine for two years, raising doubts about its long-term commitment to the site.

In the wake of the announcement, the Ministry reassured the public and mine workers that the transition would be smooth. All employees will retain their jobs and continue to receive full compensation. Essential services at the mine—including logistics, security, and healthcare—will also remain uninterrupted. The government is expected to announce a new operational model in the coming weeks, which could include partnerships with local firms.

Public reaction to the takeover has been mixed. The Concerned Youth of the Damang Catchment Area expressed strong support for the decision, stating that for far too long, local communities have seen little benefit from the wealth extracted from their land. They welcomed the move as a long-overdue correction to years of neglect and inequality.

However, policy experts at the Africa Centre for Energy Policy (ACEP) have urged caution. While they acknowledge the importance of resource sovereignty, they warned that the decision must be legally sound and transparent to avoid undermining investor confidence. According to ACEP, such actions, if not handled carefully, could harm Ghana’s international standing in the extractives sector.

Gold Fields, for its part, has accepted the government’s decision and is preparing to hand over operations, though it has not ruled out exploring legal options.

The Damang development is part of a wider wave of reforms reshaping Ghana’s gold sector. Just weeks ago, the government banned foreign involvement in artisanal gold trading and launched the Ghana Gold Board (GoldBod) as the sole regulator and exporter of small-scale mined gold. These initiatives are part of a national agenda to maximize the country’s gains from its natural resources and reduce dependency on foreign-controlled supply chains.

As the government assumes control of Damang, it marks a pivotal moment in Ghana’s quest to take ownership of its mineral wealth. Whether this move becomes a turning point for economic empowerment or sparks unintended setbacks will depend on how well the transition is managed in the weeks and months ahead.