Damang Mine deal highlights need for stronger local mining support – GoldBod

The Chief Executive Officer of GoldBod, Sammy Gyamfi, has urged a broader national discussion on how large-scale mining companies can play a more active role in building Ghana’s gold reserves, following a significant move by Damang Gold Mine Ltd.

Gyamfi highlighted the company’s decision under the ownership of businessman Ibrahim Mahama to sell its entire initial gold output to GoldBod, with backing from the Bank of Ghana, as a pivotal moment for the industry.

He described the move as both bold and patriotic, stressing that it should inspire deeper reflection across the mining sector.

According to him, it presents an opportunity for Ghana to rethink how major mining firms contribute to national reserve accumulation.

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While acknowledging the substantial role played by artisanal and small-scale miners, who collectively contribute an estimated 104 metric tonnes of gold, Gyamfi noted that large-scale mining companies channel relatively little of their production into national reserves.

He emphasised the need to reassess the current structure, pointing out that the imbalance between small-scale and large-scale contributions raises important concerns about aligning the extractive sector with Ghana’s broader economic goals.

Gyamfi also praised Ibrahim Mahama for demonstrating leadership and commitment to national development, adding that such initiatives support efforts to retain more value locally and strengthen economic resilience.

The deal is expected to enhance Ghana’s gold reserves and could set a new benchmark for cooperation between private mining firms and state institutions in managing the country’s mineral resources.