The Abosso Gold Fields Damang Mines‘ failed licence renewal has allayed concerns about employment losses, according to Lands Minister Emmanuel Armah-Kofi Buah.
He brought this to light on a visit to the company and emphasised how crucial the employees are to its continued existence.
There are worries regarding job security because the government has chosen to take over the mine because of problems with the lease renewal.
“We had to come today to meet with the Gold Fields Damang Mines employees and reassure them of His Excellency, President Mahama’s promise to preserve their jobs even at this moment of transition. “We will collaborate with them to guarantee the security and integrity of the plants and activities here,” he said.
Mr. Buah stressed without holding back, “Contractors and subcontractors who work here must be assured that this transition will not affect their commitments, agreements, and contracts that they have here.”
Finally, it is meant to make them stronger, not to make anyone weaker. He told Channel One TV, “The goal is to empower the communities here and ensure that they’re able to maintain operations.”
Potential worker demonstrations were triggered by the Gold Fields Damang Mine’s operating licence expiring today, April 18, 2025, and the refusal to extend it, putting over 1,000 jobs at danger.
Demonstrations are planned as the mine’s workers face an uncertain future as operations approach cessation.
Gold Fields had released a statement stating, “The company continues to engage with the government to secure the best outcome for all stakeholders.”
On the other hand, the Ghana Mine Workers’ Union (GMWU) has warned of dire economic repercussions and supported any demonstrations to voice workers’ concerns.
“We might have to march and demand our livelihoods directly if the government doesn’t change its stance,” stated Abdul-Moomin Gbana, general secretary of GMWU.
The employees are urging the government to step in immediately, claiming that any layoffs will destroy local economies and families.
Prior to making such a significant choice, the government needs to think about the ramifications. They need to exercise caution because more than 1,000 workers may be impacted, Gbana emphasised.
Similarly, Isaac Tandoh, the Minerals Commission’s deputy chief executive officer, charged Gold Fields for not adhering to the correct renewal protocols.
“We can’t carry on as usual,” the minister stated clearly. They ought to have contacted the Minerals Commission directly rather than sending letters if they had a better plan, Tandoh retorted.
Speaking on Joy News’ PM Express Business Edition, he defended the government’s choice to take over the mine’s operations after Gold Fields’ request to extend its mining lease was denied.
The Lands Ministry’s announcement of the decision on Wednesday has sparked discussion in the mining and commercial communities.
Andrews Tandoh was unrestrained.
“The mines at Tarkwa and Damang turned over more over $600 million last year. How much of that was retained domestically? I’m as good as your estimate,” he said.
He called Gold Fields’ actions exploitative, emphasising that the corporation decided to buy assets abroad rather than reinvesting in Ghana.
“They were mostly preoccupied in purchasing mines elsewhere, like as Osisko in Canada, rather than utilising the profits to expand the Damang mine. “They purchased a mine in Chile,” he stated.
“They can’t claim that Ghana isn’t profitable. Exiting Australia with money is challenging. However, they had the freedom to transfer funds from Ghana. That isn’t the way we can go.
In addition, the head of the Minerals Commission rejected the notion that foreign firms’ dominance in Ghana’s mining industry is justified by financial factors. Local capacity has increased significantly, he noted.
“Unlike in the past, when people were unable to obtain funding, that is no longer the case,” he emphasised.
“BCM got excellent funding from Caterpillar. A $250 million contract was struck by Engineers & Planners and Caterpillar. Rockshore is spending hundreds of millions of dollars on equipment to operate in Ghana.
Andrews Tandoh emphasised that the government is not trying to expel all mining companies from the country.
“We’re not claiming that we’ll drive out every mining company. No. He stated, “We will assist them in carrying out their duties.”
He did emphasise, however, that responsibility must accompany preferential treatment.
Gold Fields was granted a 30-year lease by the government, and they were further assisted by a development agreement. The arrangement eliminated a number of tax obligations, particularly related to fuel,” he stated.
“These mines were enjoying tariff waivers while Ghanaians were grumbling about fuel prices.”
He said the corporation had spent the previous two years treating stockpiles instead of mining.
Without working, they have been stealing free money from Ghana. And this must end. Ghanaians are entitled to better,” he said.
