The Ghana Chamber of Mines has expressed deep concern following the government’s decision to reject Gold Fields’ lease renewal application for its Damang Mine, warning that the move could have far-reaching implications for investor confidence and the future of mining in the country.
In a statement issued on Tuesday 15 April, the Chamber acknowledged the government’s authority in granting and renewing mining leases, but urged that such decisions be taken with a full understanding of their potential consequences on the wider mining sector and the national economy.
“The rejection of a renewal application raises questions about the long-term security of mining investments in Ghana and could potentially send a negative signal to both domestic and international investors,” the Chamber said.
Gold Fields, a leading multinational mining company, has operated the Damang Mine for decades. The company had submitted a renewal application in line with existing regulations, but the application was recently turned down by the Government of Ghana—a development that has sparked debate within the industry.
The Chamber emphasized that Ghana’s mining sector plays a central role in the economy, contributing substantially to employment, foreign exchange earnings, and national revenue.
In 2024, the country earned approximately US$11.5 billion from gold exports, representing more than 50% of total export revenue.
The Chamber noted that regulatory predictability and transparency are vital to maintaining Ghana’s attractiveness as a mining investment hub.
It cautioned that unexpected decisions like the Damang rejection could damage Ghana’s long-cultivated reputation as a stable and welcoming destination for mining investment on the African continent.
“While we respect the Government’s prerogative, it is essential that the unintended consequences of such decisions are carefully considered,” the statement read. “A predictable and transparent regulatory environment is crucial for attracting and retaining the investments necessary to sustain and grow this vital sector.”
Calling for calm and constructive engagement, the Chamber urged the government and all stakeholders to enter open and transparent discussions aimed at understandin the rationale behind the decision and finding a resolution that serves the interests of all parties.
“We believe in dialogue and collaboration between the Government and industry stakeholders,” the Chamber stated. “This matter must be resolved in a manner that upholds due process, respects contractual obligations, and ensures stability for companies operating in Ghana.”
The Chamber reiterated its commitment to working with the government and regulators to ensure the continued development of a responsible and sustainable mining industry that supports both Ghana’s economy and its people.
