Damang Lease Heads to Parliament

Ghana's government will soon send the Damang Gold Mine lease to Parliament for approval. This action follows the mine's takeover from Gold Fields. The government is defending the mine's continued operations. It is doing so without prior parliamentary approval.

Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, stated this is necessary. Suspending operations would cost thousands of jobs. It would also disrupt economic activities. The Damang mine is crucial for many livelihoods. Its continued operation safeguards these economic ties.

This situation highlights concerns in Ghana's mining sector. Questions arise about regulatory certainty. They also concern parliamentary oversight of mineral assets. Engineers and Planners took over the mine recently. This happened after Gold Fields' lease expired. The law requires parliamentary ratification for mining leases.

Minister Buah mentioned this agreement is part of a larger package. The government plans to present many outstanding mining agreements. These will go to lawmakers soon. He confirmed discussions with Parliament's leadership. A list of agreements needing approval has been submitted. "We are very shortly going to parliament with a lot of ratifications," he said.

The minister argued against halting operations. This would have serious consequences. It affects workers, contractors, and communities. Mr. Buah stated authorities used existing laws. These laws allowed operations to continue. They did this while completing the ratification process. This practice aims to ensure benefits to Ghanaians are not stopped.

Bright Simons, from IMANI Centre for Policy and Education, questioned the legality. He noted the law is clear. Gold belongs to the state until Parliament ratifies a lease. He argued Engineers and Planners have no legal basis to sell gold now. This sparked debate about past industry practices. Operations often begin before ratification.

Dr. Steve Manteaw, from GHEITI, acknowledged the concerns. He called them legitimate. However, he stressed the historical and legal context. The 1992 Constitution and the Minerals and Mining Act don't set ratification deadlines. They also do not place ratification responsibility on companies. Many large mines have operated for years without ratification.

Dr. Manteaw explained industry practice follows Section 13 of Act 703. This section details granting mineral rights. Once the Minerals Commission recommends it. The minister grants the right. The holder can then start operations. He confirmed all legal procedures were followed for Damang. Documentation supports this position.

He stated E&P's presence is legally grounded. The government's arrangement was vital. It prevented mine shutdown. It also safeguarded jobs and state revenue. The upcoming parliamentary review will allow scrutiny. Lawmakers will examine legal and commercial terms. This is a significant step for resource governance in Ghana.