The Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, has pledged that the newly formed agency will restore order and transparency to Ghana’s gold trade by curbing smuggling and streamlining operations.

Speaking on Channel One TV’s The Point of View during the Mining in Motion Summit on Monday, June 9, Gyamfi noted that extensive consultations with stakeholders showed overwhelming support for a single, central body to regulate the sector—long plagued by disorganization and regulatory gaps.

“All the patriotic Ghanaians we engaged, along with various civil society organizations, viewed the creation of GoldBod as a necessary and urgent intervention to clean up the mess,” Gyamfi said.

He explained that prior to the establishment of GoldBod, multiple state institutions were independently purchasing gold without proper coordination—creating loopholes that enabled rampant smuggling.

“With GoldBod now in place, we have one central agency regulating the sector, issuing licenses to all players, and enforcing a unified code of conduct covering responsible sourcing and legal exports,” he stated.

Gyamfi emphasized that this centralized and structured approach will not only tackle irregularities but also ensure Ghana maximizes its foreign exchange earnings from gold exports—vital for national development.

“This new system guarantees that the country receives the much-needed forex and revenue tied to gold exports, which is crucial for our economic progress,” he noted.

GoldBod was officially established under the GoldBod Act, 2025 (Act 1140), as a key part of the government’s broader strategy to curb illegal gold trading and strengthen Ghana’s foreign reserves.

The government has assumed operational control of the Damang Mine, a concession held by Abosso Goldfields Limited, a subsidiary of Gold Fields Limited. 

The move follows the rejection of the application by Gold Fields Limited to have its 30-year mining lease at the facility extended for another 30 years.

Abosso Gold Fields Limited’s 30-year lease is set to expire tomorrow, April 18, 2025.

The government’s action, according to a statement by the Ministry of Lands and Natural Resources, represented a crucial step in Ghana’s economic reset, ensuring that gold reserves directly benefited citizens and contributed to long-term prosperity, easing uncertainty over the future of over 1,300 workers of the company.

The statement available to the Daily Graphic indicated that the government’s decision was based on solid, empirically supported grounds.

“This decision aligns with the government’s policy shift away from the neo-colonial practice of automatic licence renewals for mining in Ghana, focusing instead on a comprehensive reassessment of mining licences to maximise national benefit,” the statement said.

The statement gave an assurance that in spite of the government’s control of the concession, it remained committed to maintaining uninterrupted operations, protecting jobs, and honouring existing valid service contracts while ensuring compliance with legal and fiscal obligations to secure Ghana’s rightful benefits from this vital resource.

Continuity

The government, the statement said, had outlined plans to ensure that all essential services — from security to health care and fuel supply to camp management — continued without disruption.

It also stated that valid contracts would be honoured, wages paid, and operations sustained as efforts were made to regularise arrangements under state stewardship.

The statement further clarified that priority would be given to local workforce retention and community-based enterprises in line with Ghana’s Local Content Policy.

This transition, it said, would focus on local hiring and procurement, ensuring that opportunities in transport, labour and auxiliary services primarily benefited businesses within the Damang catchment area.

A dedicated transition team would also engage directly with all workers, contractors, and community leaders in the coming days to address concerns, provide updates and collaborate on the way forward, it emphasised.

“The Government of Ghana is committed to enforcing strict protocols to ensure safety, orderly operations, and protection of all assets. Unauthorised access or disruptions will not be tolerated.

Together, we will uphold the integrity of this transition,” the statement added.

Reasons

The statement cited several reasons for not renewing the licence, indicating that Abosso Goldfields Limited failed to declare verifiable mineral reserves in its renewal application.

According to Regulation 189 of the Minerals and Mining Act (Licensing) Regulation, 2012 (L.I. 2176), an application to extend a mining lease must include a comprehensive technical report and a programme of mining operations.

Any such report, the statement said, should detail verifiable mineral reserves, including the quantity of gold discovered and projected extraction to justify the lease extension.

“Without declared reserves, the Minerals Commission cannot recommend the extension of the lease.

It is important to note that the company’s 2024 Annual Reports, published in March 2025 — shortly after the Notice of Rejection was served — have validated the government’s position regarding the absence of reserves necessary to support the lease extension,” the statement said.

Additionally, it said the application submitted by Gold Fields Limited lacked a detailed technical programme outlining past activities over the past 30 years or future plans for the mine.

The statement emphasised that “without this critical information, the government cannot adequately assess the mine’s historical performance or future direction — a fundamental requirement for responsible and informed decision-making”.

Furthermore, the statement pointed out that Gold Fields Limited had not allocated any budget for exploration at the Damang Mine over the past two years, insisting that this lack of investment raised serious concerns about the company’s commitment to sustainable mining practices and the long-term viability of the mine.

Background

Gold Fields Limited is the seventh biggest producer of gold in the world, and has two operational mines in Ghana, namely the Tarkwa Mine, which is operated by Gold Fields Ghana, and the Damang Mine, which is run by Abosso Goldfields Limited.

In 2011, Gold Fields bought out IAMGold’s remaining interest in Damang, and the company now owns a 90 per cent stake, with the Government of Ghana holding the remaining 10 per cent.

According to the 2024 annual report of Gold Fields, no mineral reserves were declared at Damang, which meant there were no defined gold reserves to be mined there.

Actual mining at the mine is said to have stopped in 2023 as the company resorted to processing stockpiles.

In fact, it is stated in the Mineral Resources and Reserves Supplement to the Integrated Annual Report of 2023 that no exploration was proposed for the Damang Mine in 2024.

No reserves

The lack of reserves and the lack of funds for exploration spending for the Damang Mine appeared to suggest that the company was not interested in expanding mine life for the mine at Damang.

Additionally, the company, this year, intended to continue the processing of stockpiles in line with the life of the mine for at least one year.

The mine has since been considered as one that has not met the requirements and justification for an extension of lease.

Source: Graphic online

An application by Gold Fields Limited to renew the Damang Mining Lease held by its subsidiary, Abosso Goldfields Limited, for another 30 years has been rejected, a top government source has revealed. 

This was corroborated in a statement released by Gold Fields Ghana Limited that the application to the Minerals Commission to extend the mining lease for the Damang Mine had been declined.

The decision not to renew the mining lease comes at a time when the existing 30-year lease granted on April 18, 1995, expires on April 18, 2025, marking a significant milestone in the government’s mission to reset the nation’s economic landscape.

Gold Fields Limited is the seventh biggest producer of gold in the world, and has two operational mines in Ghana, namely the Tarkwa Mine, which is operated by Gold Fields Ghana, and the Damang Mine, which is run by Abosso Goldfields Limited.

Renowned for its rich gold deposits, the Damang Mine is poised to play a pivotal role in strengthening Ghana’s economy.

The Government of Ghana held a 10 per cent share in both mines.

According to the 2024 Annual Report of the Gold Fields Group, which has mines in Canada, Australia, Peru, Chile and South Africa, the two mines in Ghana accounted for 32 per cent of the group’s gold production in 2024, meaning about a third of the entire gold produced by Gold Fields worldwide comes from Ghana.

Earlier reports indicated that before mining stopped at Damang, the Ghana mines of the company contributed about 40 per cent to the group.

Abosso Mine

The Abosso Mine initially operated from 1882 until 1956.

From 1989, Ranger Exploration, initially with other partners, first examined the feasibility of re-treating tailings from the Abosso Mine, and then the northeast extension of the Banket Conglomerates towards Damang village.

Further works carried out by Ranger between 1990 and 1992 demonstrated near-surface mineralisation.

By early 1996, three million ounces of mineral resources had been estimated in the area, and a feasibility study demonstrated that open pit mining would be viable.

Although the mining lease was granted on April 18, 1995, mining at the concession commenced in August 1997, with the first gold pour in November after the construction of the Damang Mine was completed earlier that year.

Gold Fields Limited and Repadre Capital Corp., a Toronto-listed mining royalty company, signed an agreement in 2001 to buy Ranger Exploration’s 90 per cent interest in Damang.

IAMGold and Repadre merged to give IAMGold an 18.9 per cent interest in Damang, and Gold Fields a 71.1 per cent interest.

In 2011, Gold Fields bought out IAMGold’s remaining interest in Damang, and the company now owns a 90 per cent stake, with the Government of Ghana holding the remaining 10 per cent.

According to the 2024 annual report of Gold Fields, no mineral reserves were declared at Damang, which meant there were no defined gold reserves to be mined there.

Actual mining at the mine is said to have stopped in 2023 as the company resorted to processing stockpiles.

In fact, it is stated in the Mineral Resources and Reserves Supplement to the Integrated Annual Report of 2023 that no exploration was proposed for the Damang Mine in 2024.

No reserves

The lack of reserves and the lack of funds for exploration spending for the Damang Mine appeared to suggest that the company was not interested in expanding mine life for the mine at Damang.

Additionally, the company this year intended to continue the processing of stockpiles in line with the life of the mine for at least one year.

The mine has since been considered as one that has not met the requirements and justification for an extension of lease.

Source: Graphic Online