Investor Confidence at Risk as Ghana Rejects Damang Mine Lease Renewal, Says Chamber
The Ghana Chamber of Mines has issued a strongly worded statement expressing deep concern over the government’s decision to reject Gold Fields’ application to renew the mining lease for its Damang Mine, warning that the move could jeopardise investor confidence in one of Africa’s top gold-producing nations.
In a press release on Tuesday, April 15, 2025, the Chamber acknowledged the government’s authority to grant or deny lease renewals but warned that the decision could have “significant implications” for Ghana’s mining sector and its broader economic stability.
“The rejection of a renewal application raises questions about the long-term security of mining investments in Ghana,” the Chamber said. “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 Gold Fields Ghana, is one of the flagship operations in the country’s Western Region. A lease renewal rejection would halt operations, affect local employment, and raise concerns over Ghana’s regulatory predictability.
The statement comes against the backdrop of a sector that remains vital to Ghana’s macroeconomic performance. According to the Chamber, gold exports generated approximately $11.5 billion in 2024 — more than half of the country’s total export revenues.
The Chamber emphasized that maintaining a “predictable and transparent regulatory environment” is essential for attracting and retaining long-term capital in the extractive industry.
While the government has not yet publicly disclosed its rationale for rejecting the lease renewal, industry insiders fear that the decision may reflect a growing shift towards resource nationalism — a stance that, while politically resonant domestically, risks unsettling international investors.
The Chamber called for urgent dialogue between stakeholders, describing the decision-making process as needing to be “fair, equitable, pragmatic and in the best interest of all stakeholders.”
“It is imperative that all concerns are addressed in a manner that upholds due process, respects contractual obligations, and provides clarity and certainty,” the statement added.
Gold Fields has not publicly commented on the matter as of the time of publication. However, the company, which has made substantial investments in Ghana over the last two decades, is expected to engage with the government through formal channels to seek redress or clarification.
The Damang lease rejection comes at a time when Ghana is actively seeking to expand its mining base beyond gold and attract diversified investments into critical minerals such as lithium and manganese. Analysts warn that a perception of regulatory volatility could complicate these ambitions.
The Chamber reiterated the organization’s commitment to engaging collaboratively with government agencies to foster “a conducive environment for responsible and sustainable mining.”
As global competition for mining capital intensifies, the Chamber urged authorities to resolve the matter swiftly to prevent any erosion of Ghana’s appeal in the global mining investment landscape.
“We urge all parties to prioritize dialogue and collaboration… thereby safeguarding Ghana’s enviable position as an investment destination of choice on the African continent,” the Chamber concluded.
