The African Centre for Energy Policy (ACEP) has raised concern over the government’s decision to take over operations of Goldfields Damang Mine following the expiry of the company’s mineral rights on April 18.
According to ACEP, the government’s refusal to renew the mining license appears premature, especially as the company has initiated legal processes to challenge the decision.
Executive Director of ACEP, Ben Boakye said the government’s action disregards the principles outlined in the mining lease, which provide that operations should remain undisturbed until the dispute is fully resolved.
He stressed that Damang Mine had met the necessary conditions under Section 2075 of the Minerals and Mining Act, which supports the company’s right to continue operations during the pendency of the dispute.
Mr. Boakye emphasized that the move to assume control of the mine, despite the ongoing legal contestation and the lack of clear communication on the basis for the termination, could have negative implications for the country.
He questioned the government’s eagerness to take over operations, especially when the state claims there are no new reserves in the mine.
ACEP argued that this contradiction raises concern about the rationale behind the decision and the potential risks being undertaken by the state.
While affirming that Ghana must derive maximum benefit from its mineral resources, ACEP underscored the need for transparency and factual decision-making that aligns with national interests.
ACEP has called on the government to demonstrate legal diligence and a sincere commitment to long-term resource management, warning that a rushed and disputed takeover could result in international arbitration, reputational harm, and erosion of investor confidence in the country’s mining sector.
