Former Corporate Affairs Manager for Ghana COCOBOD, Fiifi Boafo
Former Corporate Affairs Manager for Ghana COCOBOD, Fiifi Boafo, has questioned the rationale behind the government’s decision not to renew Gold Fields’ mining lease for the Damang Mine.
He is raising concerns about whether a powerful influence may be behind the government’s decision.
In a post shared on social media, Boafo expressed worry about the potential impact of the move on investor confidence in Ghana, especially amid claims that some mining companies, frustrated by recent developments, are already exiting the country.
What troubles him even more is the possible adverse effect the decision could have on employees, locals, and the broader community that has, over the years, benefited from Gold Fields’ presence.
“Why is Gold Fields struggling to get its Damang Mine lease renewed? Is there a powerful hand frustrating the process in order to take over the mine? What will be the effect on investor confidence in the country? Who stands to benefit from the potential refusal of the lease renewal? Will it be the government, employees, the local community or…? Interesting days ahead,” he wrote in the post.
Background
Gold Fields’ application for an extension of its lease for the Damang Mine has been rejected by the government.
A memo to staff indicated that the current lease will expire on April 18, 2025. However, all efforts to renew it have so far been unsuccessful.
The company is currently engaging with the Minister of Lands and Natural Resources in an attempt to resolve the situation.
In the meantime, Gold Fields has informed its workers to begin preparing for the expiry of the lease.