Chamber of Mines in Ghana Raises Alarm Over Damang Mining Lease Denial

The Ghana Chamber of Mines has raised serious concerns following the government’s decision to reject the lease renewal application submitted by Gold Fields for its Damang Mine operations.

In a statement issued on April 15, the Chamber acknowledged the state’s legitimate authority to grant and renew mining leases, emphasizing the critical role such decisions play in the responsible stewardship of Ghana’s mineral wealth. However, it cautioned that the broader consequences of these decisions must be carefully considered, given their far-reaching impact on the mining sector, investor confidence, and overall economic progress.

“The mining industry is a key pillar of Ghana’s economy,” the Chamber stated, pointing to gold’s significant contribution to national development. In 2024 alone, gold exports generated around US$11.5 billion—over half of the country’s total export earnings. The sector also plays a central role in employment creation, foreign exchange generation, and government revenue.

The Chamber warned that unexpected regulatory decisions or policy shifts could undermine investor confidence and potentially discourage future investment. It urged the government to weigh the unintended consequences of lease denials, especially in a sector that is critical to national growth and development.

A stable, transparent, and predictable regulatory environment, the Chamber stressed, is essential for attracting and retaining long-term investment in Ghana’s mining industry. The Chamber believes that when regulatory decisions are made with clarity and consistency, they help build trust among stakeholders and foster a business climate conducive to sustainable development.

In its statement, the Chamber reaffirmed its readiness to engage constructively with government officials and regulatory bodies. It called for open and transparent dialogue to better understand the rationale behind the lease rejection and to collaboratively explore practical solutions that safeguard the interests of all parties involved—especially local communities, investors, and the Ghanaian state.

The Chamber concluded by reiterating its commitment to promoting responsible and sustainable mining practices. It emphasized the importance of working together with government, regulators, and industry players to achieve outcomes that ensure mutual benefit for both the nation and the companies that contribute to its economic engine.