The Africa Centre for Energy Policy (ACEP) has called on the Ghanaian government to suspend plans to take over the Damang gold mine, citing concerns over the approach’s legality and potential repercussions on the country’s mining industry.
In a statement issued on Thursday, April 17, 2025, ACEP’s Executive Director, Benjamin Boakye, recommended that the government exercise restraint and renew dialogue with Abosso Goldfields Limited (AGL) to resolve the dispute.
“The government needs to exercise restraint, renew dialogue, and pursue a legally guided resolution that protects the interests of both the state and investors,” Boakye stated.
The government’s decision not to renew AGL’s mining lease, set to expire on April 18, 2025, has led to directives for the company to cease operations and vacate the site.
The Minerals Commission cited AGL’s failure to comply with instructions to engage the Commission on the lease extension, instead communicating directly with the Minister of Lands and Natural Resources.
Boakye warned that abrupt and disputed actions could have far-reaching implications for Ghana’s mining industry. “A rushed and disputed decision not only risks international litigation and reputational damage but also undermines investor confidence and the rule of law,” he emphasized.
He further noted that the government’s actions have been perceived as an effort to nationalize the mine, which could have negative consequences.
“Already, the news portals have captured state officials and also implied in the minister’s statement that this is all an effort to nationalize the mine,” Boakye added.
ACEP stressed that Ghana must prioritize legal due process and foster an investment climate rooted in predictability and trust to protect the country’s interests and reputation.