Ghana Chamber Of Mines Expresses Concern Over Rejection Of Gold Field’s Damang Mine Lease Renewal Application
Ghana’s mining sector risks a dent in investor confidence following the government’s recent decision to reject Gold Fields’ lease renewal application for its Damang Mine, a move that has prompted the Ghana Chamber of Mines to urge for greater transparency and stakeholder engagement.
In a statement issued Monday, the Chamber acknowledged the government’s authority to grant or withhold mining leases, but cautioned that such decisions carry broader implications for investment security and the economic outlook of the resource-dependent nation.
“The rejection of a renewal application raises questions about the long-term security of mining investments in Ghana,” the Chamber warned. “This development has the potential to undermine Ghana’s hard-earned reputation as a leading destination for mining investment in Africa.”
The Damang Mine, operated by South Africa-headquartered Gold Fields, is one of several key assets in Ghana’s gold sector, which remains the country’s largest source of foreign exchange. Gold exports contributed approximately US$11.5 billion in 2024, representing over half of total export earnings, according to Chamber data.
While details behind the government’s decision remain undisclosed, industry observers have expressed concern that the lack of clarity could discourage both existing and prospective investors in Ghana’s extractives sector.
“It is important that in addition to the direct effects of such decisions, the unintended consequences are also carefully considered so as to avoid outcomes that could be negative for all stakeholders,” the Chamber stated, underscoring the importance of regulatory predictability and policy coherence.
The group is calling for open and transparent discussions between the government and relevant stakeholders to resolve the matter amicably and to ensure continued investment in a sector that provides thousands of jobs and remains central to Ghana’s macroeconomic stability.
“It is imperative that all concerns are addressed in a manner that upholds due process, respects contractual obligations where applicable, and provides clarity and certainty for mining companies operating in Ghana,” the Chamber added.
The government has not yet issued a detailed public explanation for the Damang lease rejection. However, the Chamber stressed its commitment to constructive engagement and reiterated the need to protect Ghana’s status as a top-tier mining destination on the African continent.
