Ghana’s Mine Workers Union has publicly opposed the government’s planned takeover of the Damang gold mine, urging instead a collaborative partnership with former operator Gold Fields to ensure operational sustainability.
The dispute follows the Minerals Commission’s refusal to renew Gold Fields’ mining lease, citing unmet regulatory requirements, and signals rising tensions over balancing national interests with investor confidence.
The government announced its intent to assume full control of the mine after denying Gold Fields’ renewal application, pledging to honor existing employment contracts and service agreements. However, Abdul-Moomin Gbana, General Secretary of the Ghana Mine Workers Union, criticized the move, questioning the state’s capacity to fund the mine’s operations amid broader fiscal challenges. “A government takeover requires significant capital injection. Without it, we risk mismanaging the asset,” Gbana stated, highlighting concerns over worker welfare and mine productivity.
The union advocates for a joint venture with Gold Fields, leveraging the multinational’s technical expertise and financial resources. “Partnering with Gold Fields offers a smarter path to profitability and sustainability,” Gbana added, noting the government’s existing struggles with public sector wage bills and economic instability.
The Africa Centre for Energy Policy (ACEP) echoed these concerns, urging the government to halt the takeover and reopen transparent negotiations. The policy group warned that abrupt state intervention could deter foreign investment and damage Ghana’s reputation as a stable mining jurisdiction. “Rushed decisions undermine legal processes and jeopardize long-term mineral governance,” ACEP stated, calling for adherence to regulatory frameworks.
Ghana’s Lands and Natural Resources Minister, Emmanuel Armah Kofi Buah, has yet to respond to the union’s proposal but previously assured stakeholders of the state’s commitment to maintaining operations. The Damang Mine, operational since 1997, contributes approximately 2% of Ghana’s annual gold output, with its transition seen as a test case for resource nationalism in West Africa.
As global mining firms monitor the situation, the standoff underscores a regional dilemma: how to assert greater local control over mineral wealth without alienating foreign capital. Ghana’s pursuit of equitable partnerships reflects broader shifts across Africa, where governments increasingly seek to renegotiate legacy contracts while avoiding the pitfalls of outright nationalization. The outcome at Damang could set a precedent for future disputes, shaping the delicate balance between sovereignty and investment in the continent’s extractive industries.
