Suspend plans to confiscate Damang Mine, decision is premature – ACEP to government

The Africa Centre for Energy Policy (ACEP) is urging the government to reconsider its decision not to renew the mining lease of Abosso Gold Fields Limited (AGL), operators of the Damang Mine, describing the move as premature.

In a statement signed by Executive Director Benjamin Boakye, and sighted by GhanaWeb Business, ACEP questioned the transparency and legal basis of the Minerals Commission's recommendation to end AGL’s lease after April 18, 2025.

The organisation warned that such a decision could have costly consequences for the state, citing past controversies such as the Ameri power deal and the Agyapa royalties agreement.

Earlier this week, the government, through the Minerals Commission, rejected Gold Fields' bid to renew its mining lease agreement following its scheduled expiration on April 18, 2025.

However, ACEP noted that Gold Fields had formally notified the government of its intention to pursue arbitration, invoking Section 27(5) of the Minerals and Mining Act (Act 703), which allows a mining operation to continue pending the resolution of a dispute.

The think tank argued that the government’s planned takeover is both premature and potentially unlawful.

Raising concerns over investor confidence, ACEP cautioned that the government’s approach could significantly damage Ghana’s reputation among international investors.

Calling for timely intervention, ACEP appealed to the government to reopen communication with Abosso Gold Fields Limited in pursuit of an amicable resolution.

ACEP warned that the decision, if not reversed, could have long-term negative implications and called for the move to be suspended.

SP/MA

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