Ghana’s recent decision to reclaim the Damang Mine following the expiration of its 30-year lease has sparked a national conversation about resource governance, with economist Dr. John Kwabena Kwakye advocating for a policy mandating state ownership of all expiring mining concessions.
The move, which saw the Western Region mine revert to government control, is hailed by some as a pivotal step toward resource sovereignty but criticized by others over procedural and economic concerns.
The Ministry of Lands and Natural Resources declined to renew the lease for Gold Fields’ subsidiary, Abosso Goldfields Limited (AGL), citing failure to declare verifiable mineral reserves, insufficient exploration investment, and the absence of a detailed technical plan. “These gaps rendered the renewal application noncompliant with our regulations,” the ministry stated. Dr. Kwakye, Director of Research at the Institute of Economic Affairs, praised the decision as “bold and important,” urging its replication nationwide. “Restoring expiring leases to state ownership ensures Ghana maximizes its mineral wealth,” he asserted on social media platform X.
Critics, however, warn of risks. The Africa Centre for Energy Policy (ACEP) accused the government of bypassing transparent legal processes, arguing the abrupt takeover could deter foreign investment. “Rushed actions undermine Ghana’s reputation for rule of law,” ACEP noted, questioning whether procedural safeguards under mining regulations were followed. Meanwhile, Abdul-Moomin Gbana of the Ghana Mineworkers’ Union cautioned against operational disruptions. “Worker welfare and stability must be prioritized during transitions,” he emphasized, acknowledging the state’s resource rights but stressing the need for preparedness.
The Damang case underscores Ghana’s balancing act between asserting resource control and maintaining investor confidence. With several mining leases nearing expiration, the government signals stricter oversight to curb perceived exploitation. Yet analysts highlight challenges: while resource nationalism has surged across Africa from Tanzania’s renegotiated contracts to South Africa’s mining charters success often hinges on transparent frameworks and institutional capacity.
Ghana’s approach may set precedents for managing natural assets in an era of rising commodity demand and environmental scrutiny. As debates continue, the focus remains on crafting policies that harmonize national interests with fair investor terms, ensuring mineral wealth translates into broad-based growth. Historical precedents, such as Botswana’s diamond partnerships, demonstrate the potential of collaborative models, though Ghana’s path will depend on navigating stakeholder tensions and bolstering governance systems to avoid past pitfalls of mismanagement.
Restoration of Damang to state ownership is an important bold step that should be replicated for all expiring mining leases. ://mobile.ghanaweb.com/GhanaHomePage/business/Damang-Mine-s-return-to-state-oversight-marks-critical-step-in-Ghana-s-economic-Lands-minister-1980519
— J. K. Kwakye (@JohnKwabenaKwa1) April 18, 2025
