Parliament approves one-year transitional mining lease for Abosso Goldfields at Damang

Parliament has ratified a one-year transitional mining lease agreement between the Government of Ghana and Abosso Goldfields Limited. This allows for continuous gold mining operations at the Damang site in the Wassa West District of the Western Region.

The short-term lease, which comes after the expiration of the previous agreement on April 18, 2025, will run until April 2026. The terms of the new agreement are explicit: the lease is strictly non-renewable and prohibits any form of extension, transfer, mortgage, or related transaction beyond its expiration date.

The approval followed a motion moved by the Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, during proceedings in Parliament on Friday, August 1. He explained that the interim arrangement was necessary to ensure a smooth transition in the management of the Damang mine while safeguarding national interests and protecting employment and production continuity in the area.

“This transitional lease is designed to serve as a stopgap measure while the government finalizes future plans for the site,” the Minister said. “It is not open to renegotiation or extension. This is a clear-cut, one-year lease with firm boundaries.”

According to the Minister, the government had initially intended to take over full operations of the Damang mine following the end of the earlier lease in April. However, after extensive stakeholder consultations—including with community leaders, mining unions, and technical experts—a decision was made to grant the temporary extension under stringent terms to avoid any operational vacuum and possible disruptions in local employment.

Parliamentarians from both sides of the House supported the motion, albeit with caution. Some called for increased transparency and accountability in the management of mineral resources, while others stressed the need for clear government direction regarding the long-term ownership and control of the mine post-April 2026.

Abosso Goldfields Limited, a subsidiary of Gold Fields Ghana, has operated the Damang mine for over two decades. The mine is one of Ghana’s major gold-producing assets, contributing significantly to both the national economy and local development in the Western Region.

The transitional lease now provides a legal and operational framework for the company to continue mining activities for an additional year while the state considers future ownership or alternative commercial arrangements.