On Wednesday April 16 2025, a statement by the Ministry of Lands and Natural Resources, provided details regarding the government’s decision not to renew Goldfield’s Damang’s mining lease, citing a barrage of technical and compliance issues. Assuaging fears over potential job losses, the statement indicated that no job would be lost. Apart from the fact that the statement was rather belated, issued just two-days before the expiration of the contract on April 18, I also find it noteworthy that no single financial impropriety had been raised against the company. This is of particular importance as the public framing of the issue had impugned Goldfields’ fiduciary obligations to the state over the three decades it has operated the Damang mine. Again, at no point in the statement was it suggested that the Ministry and all the required agencies had had extensive engagement with Goldfields on the compliance issues, for which reason a refusal would be justified.
Framing that won the Minds
News of the government’s refusal to renew the Goldfield Damang mining lease following its expiration, has remained topical, with many mixed and divided views on same. Whilst some have applauded the government for taking steps to nationalize a state mineral resources with the view to optimising Ghana’s fullest potential from its extractives, others have raised some germane concerns over the turn of events. Although the company, through statement to its employees, had made public the development, the government’s official statement on same was rather belated. It was not until April 16 2025, when a statement was issued to explain the government side on the matter. Even before this official statement, the narrative that the government was seeking to nationalize the mine with the view to optimising Ghana’s equity in gold appeared to have gone down well. Truly, the framing worked to perfection. Having made some videos on the matter and reading the comments from the various newsportal on the matter, I am convinced that the narrative that government was seeking to nationalize to proscribe it from elite/imperialist capture has worked to perfection. Almost all the individuals who supported the move had suggested that Ghana’s 10% interest in large scale mining companies were woefully inadequate and an absolute rip-off. Interestingly most of these proponents appeared unaware of other fudiciary/financial responsibilities borne by large scale mining companies, including royalty payments, corporate social responsibilities initiatives, the huge capital investments in human and communities that are made by these companies.
A barrage of suspicions
Already some commentators, particularly those from the Minority in parliament and the New Patriotic Party, are alleging that the Goldfields Damang mines may be turned over to politically exposed persons within the highest echelons of power, to mine. For example, responding to a question on whether Ghana has the capacity to operate the Goldfields mine, one Banahene, a known NDC communicator mentioned on Angel FM’s mornig show that individuals like Ibrahim Mahama, who has reportedly mined for Liberia, has the capacity to operate the Goldfields Damang mines, further deepening suspicious over the true intent of the government on the matter. Others have also suggested that the decision of the government not to renew Goldfield Damang mining lease is part of efforts to nationalize some large state mining companies, aimed at realising revenue in the now established Goldbod. Such opponents are of the view that the Damang Goldfields mines could provide a lease of life to the Goldboad’s rather ambitious mission of buying and selling 3 tonnes of gold weekly, which its Chief Executive Officer, estimates at $250 million.As the small-scale sector remains unpredictably volatile and perfunctorily regularised, incursions into some established mines could reasonably assure the government of the success of its flagship gold purchasing program.Beyond these, concerns have also been raised about this situation that tends to make the government both a referee and player or a judge in its own case.
Nationalism Against Realism
This development has pitched the concepts of nationalism against the audacity of realism. While taking a side with the government make one looks patriotic, question about whether the government has the capacity to operate and manage the complexity that comes with large scale mining remains unanswered. Personally, while I am tempted to be more nationalistic on the matter, I objectively admit that successive governments have not done so well to turn the corner for state managed resources and institutions. It cannot be lost on me that the quest for nationalism is interestingly coming at a time that government has advanced plans to privatize the Electricity Company of Ghana. From media reports, it is apparent that governments have not been able to profitably manage resources and institution, leading to surmounting indebtedness which the state must end up supporting with tax payer’s money. Currently, ECG, according to the Minister of Energy is saddled with some 80 billion Ghana cedis debt. Cocoabod, on the other hand, is also saddled with over 32 billion debts, with many other state institutions, gasping for financial breadth. The choice is for us to make.
Conclusion
Whilst it sounds nationalistic and exciting that the government is taking over the Goldfields mine, we should, as a people, not burry our heads in the sand over our inability to manage state resources and institutions well. I would not be in our long-term collective interest to destabilise the operations of this mine that has paid its dues by way of taxes, royalties, corporate social investments, capacity building for communities and employees, among a host of other compliant payments and requirements. Particularly, on this issue, I wish that the Minister further engages Goldfields Damang over the technical concerns forming the basis for their refusal to renew. I am not sure this will be lost on the investor community, denying Ghana the much-needed foreign direct investments. Yes, so the framing won the minds, but I am not too sure the way we are going about this issue will help us succeed in the mines.
Samuel Boateng Osarfo (SkobaPR)
Researcher/Policy Analyst/Communications.
Surfos7@gmail.com