The former Corporate Affairs Director of the Ghana Cocoa Board, Fiifi Boafo, has raised concerns over the government’s decision not to renew the mining lease for Abosso Gold Fields’ Damang Mine, warning of possible repercussions on local employment, economic stability, and investor confidence in Ghana’s extractive sector.
Reacting to an official communication from Gold Fields Ghana confirming the rejection of its lease extension request for the Damang concession — set to expire on Friday, April 18, 2025 — Mr. Boafo took to social media to express his misgivings and pose a series of probing questions.
“1. Why is Gold Fields struggling to get its Damang mine lease renewed?
2. Is there a powerful hand frustrating the renewal in order to take over the mine?
3. What will be the effect on investor confidence in the country?
4. Who stands to benefit from the potential refusal of the lease renewal?
5. Will it be the government, employees, the local community, or…?”
“Interesting days ahead,” he added.
This follows an internal notice by Gold Fields to employees, announcing a phased shutdown of operations at Damang due to the lease expiry. The company, however, clarified that the development does not affect operations at its Tarkwa mine and that it is actively engaging the Ministry of Lands and Natural Resources to seek clarity and explore a possible resolution.
The Damang mine, operated by Abosso Goldfields Limited in Ghana’s Western Region, has been a key gold-producing asset for decades. After experiencing operational challenges in the early 2010s, Gold Fields committed over $180 million in 2016 to extend the mine’s life, increase output, and deepen its economic contributions, particularly in employment, land reclamation, and infrastructure development.
As the April 18 deadline approaches, attention is now focused on the government’s next steps and how it addresses growing concerns within the business and mining communities.
Source: Ghana/StarrFM 103.5FM/Vanessa Tutuwaa Danso
