Parliament has approved a one-year non-renewable mining lease for Abosso Goldfields at Damang in the Western Region.

The new lease, which follows the expiration of the original agreement on April 18, 2025, has now been extended to April 2026, following stakeholder consultations.

Under the terms of this agreement, no further extensions, transfers, mortgages, or related transactions will be permitted beyond the new expiration date.

It would be recalled that the government had initially planned to assume control of operations after the original lease expired, having previously announced its decision not to renew Gold Fields’ Damang mining lease.

However, after broader consultations, government agreed to extend the arrangement by one additional year under strict non-renewable conditions.

In 2011, Gold Fields acquired IAMGold’s remaining interest in the Damang Mine, bringing its ownership stake to 90 percent. The Government of Ghana holds the remaining 10 percent.

According to Gold Fields’ 2024 Annual Report, no mineral reserves were declared at Damang, indicating the absence of defined gold deposits available for mining.

Actual mining activities at Damang reportedly ceased in 2023, as the company shifted focus to processing existing stockpiles.

The report revealed that mining activities at Damang had ceased following the depletion of the Huni pits.

Meanwhile, the company intended to continue processing stockpiles until the end of 2025.

SA/MA

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