A group calling itself the Concerned Youth of the Damang Site Catchment Area has expressed their support for the government’s decision not to renew the mining lease of Abosso Goldfields Limited (AGL) in Damang.
Goldfield’s current lease expires on April 25, and the company had reportedly applied for a lease extension in December 2024.
However, the government intends to take over the operations and has instructed the leading global gold producer to vacate the site by April 18, 2025.
The Convener of the Concerned Youth of the Damang Catchment Area, Emmanuel Afful said: “You cannot be in a town for three decades and leave it looking abandoned. There’s no hospital, no functional water systems in some communities, and the same dusty, pothole-ridden roads. Compare Damang to Kenyasi or Akyem, where other mining companies have built hospitals and better infrastructure. Three decades should have transformed Damang, but instead we got neglect.”
According to another one of the convenors of the group, Eric Garibor, Goldfields failed to prioritise the welfare of locals despite promising to do so.
“This wasn’t a partnership. It was extraction with exclusion. Now that they are gone, let us chart a new course. A Ghanaian success story is possible. We’ve seen it at Awaso. Let’s do the same in Damang,” said Eric Garibor.
‘Full support’
A number of industry players in the country’s extractive sector including the Ghana Extractive Industries Transparency Initiative (GHEITI) and the Minerals Commission have already backed this move by the government, highlighting the opportunity to maximize national benefit from the mineral resources.
The Chairman of GHEITI, Dr. Steve Manteaw, welcomed the decision, noting that the country must prioritize value for money in lease agreements.
“There have been instances where certain expired leases were renewed for the holders to only flip, sell the mine and make huge profits which should have come to the state. I am not saying that is the reason for the decision of the Minerals Commission in this particular instance but I won’t be surprised but let’s believe that the regulator is working in the best interest of the state I don’t believe there’s any course for worry,” he explained.
However, the Africa Centre for Energy Policy (ACEP) has called on the Ghanaian government to suspend plans to take over the gold mine.
