A report has noted that the Minerals Commission’s decision to reject the renewal of Goldfields’ Damang Mine lease was due to the company’s failure to meet the requirements for an extension.

According to a report by MyJoyOnline.com, checks at the Commission confirmed that the rejection was warranted.

Section 44 of the Minerals and Mining Act, 2006 (Act 703), outlines the conditions and processes under which a mining lease can be renewed.

These are:

(1) A holder of a mining lease may, at any time but not later than three months
before the expiration of the initial term of the mining lease or a shorter period that
the Minister allows, apply in a prescribed form to the Minister for an extension of
the term of the lease for a further period of up to thirty years in respect of all or any
number of contiguous blocks the subject of the lease and in respect of all or any of
the minerals the subject of the lease.

(2) An application made under subsection (1) shall be accompanied with a proposed programme of mineral operations.

(3) On an application duly made under subsection (1) and if the holder has
materially complied with the obligations imposed by this Act with respect to the
holding of and activities pursuant to the mining lease, the Minister shall grant the extension of the term of the lease on conditions specified in writing.

(4) Where the holder has made an application for an extension of the term of the
lease, and the term of the lease would but for this subsection, expire; the lease shall continue in force in respect of the land the subject of the application until the application is determined.

(5) A dispute between the Minister and a holder in respect of a matter that arises under this section shall be resolved under section 27.

It is, however, unclear which of these requirements the company failed to meet, as the government has yet to release an official statement regarding the matter.

This comes after the government rejected Goldfields Company Limited's request for the 30-year mining lease of the Damang Mine, which was granted by the Government of Ghana in April 1995 and is set to expire on April 18, 2025.

Experts have called on the government to make the reasons behind its decision public.

SSD/MA

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