Chamber of Mines Questions Damang Lease Rejection

The Ghana Chamber of Mines has expressed grave concern over the government’s recent decision to reject the lease renewal application of Gold Fields’ Damang Mine, warning that the move could shake investor confidence and threaten Ghana’s reputation as a mining investment destination.

In a statement issued Tuesday April 15, , the Chamber acknowledged the government’s legal authority to grant or deny mining leases but cautioned that such decisions carry far-reaching consequences, not only for mining firms but also for the broader economy.

“The rejection of a renewal application raises questions about the long-term security of mining investments in Ghana,” the Chamber stated. “This development has the potential to undermine Ghana’s hard-earned reputation as a leading destination for mining investment in Africa.”

The Damang Mine, operated by Gold Fields Ghana, has played a pivotal role in the country’s gold production. The mining sector as a whole remains the backbone of Ghana’s economy, contributing over 50% of total export earnings in 2024, with gold exports alone raking in approximately US$11.5 billion.

Against this backdrop, the Chamber urged the government and stakeholders to weigh both the direct and unintended consequences of such regulatory decisions.

“A predictable and transparent regulatory environment is crucial for attracting and retaining the investments necessary to sustain and grow this vital sector,” the statement stressed.

Calling for calm and constructive engagement, the Chamber appealed to all parties to engage in transparent dialogue to understand the rationale behind the rejection and explore avenues for an amicable resolution. It emphasized the need to uphold due process, respect contractual obligations, and ensure regulatory clarity to preserve Ghana’s mining investment climate.

“The Chamber reiterates its commitment to working closely with the Government, regulatory bodies, and other stakeholders to foster a conducive environment for responsible and sustainable mining practices,” the statement concluded.

The government is yet to respond publicly to the concerns raised