Reports from the Africa Centre for Energy Policy (ACEP) indicate that Abosso Goldfields Limited, a subsidiary of mining giant Gold Fields Limited, has taken legal action against the Government of Ghana following the termination of its mining lease for the Damang site.
The legal move follows the government’s decision not to renew the company’s 30-year lease, a stance reportedly influenced by pressure from local youth who have accused the company of failing to contribute meaningfully to community development.
With the lease set to expire on Friday, April 18, 2025, the government has assumed operational control of the Damang Mine.
In an official statement, the government cited the company’s inability to declare verifiable mineral reserves as a critical reason for rejecting Abosso Goldfields Limited’s lease renewal application.
Gold Fields Limited, one of the world’s leading gold producers, operates two major mining sites in Ghana: the Tarkwa Mine, managed by Gold Fields Ghana, and the Damang Mine, operated by Abosso Goldfields Limited.
The company gained full operational control of the Damang Mine in 2011 after acquiring IAMGold’s remaining shares.
Currently, Gold Fields holds a 90% ownership stake in the Damang Mine, while the Government of Ghana retains the remaining 10%.
