The Africa Centre for Energy Policy (ACEP) has urged the Government of Ghana to step back from its imminent move to expropriate the Damang gold mine, warning that such a decision could severely damage Ghana’s investment reputation if not handled with transparency and adherence to due process.
With the mining lease of Abosso Goldfields Limited (AGL) set to expire on April 18, 2025, the government has issued directives for the company to cease operations and vacate the site—raising concerns within the mining and investment community. ACEP, however, is calling for a measured and legally sound approach.
In a statement released on April 17, Benjamin Boakye, ACEP’s Executive Director, emphasized the need for restraint and diplomacy. “The operation to take over the mine should be halted. Government must re-engage the company and pursue a path guided by the law, not force,” Boakye urged.
According to the Minerals Commission, AGL failed to follow procedural guidelines, particularly by bypassing the Commission and engaging the Minister of Lands and Natural Resources directly about the lease extension. Isaac Tandoh, Deputy CEO of the Commission, described this as a breach of protocol.
While government insists the lease will not be renewed due to non-compliance, ACEP argues that the situation calls for diplomacy, not haste. Boakye warned that abrupt decisions, especially those perceived as state attempts to nationalize private assets, could expose Ghana to international arbitration and reputational fallout, potentially deterring future foreign investment.
“The narrative emerging from official circles suggests a shift toward resource nationalism. This could scare off investors who see Ghana as a stable mining jurisdiction,” he said.
ACEP further cautioned that any action taken outside legal frameworks not only risks litigation but also erodes Ghana’s long-standing image as a trustworthy investment destination in the extractive sector.
As tensions mount ahead of the lease expiration deadline, the think tank is calling on the government to renew its commitment to rule of law, contractual fairness, and long-term economic strategy, rather than short-term political maneuvering.
