Joseph Adusei, a Geologist and a mining expert, has cautioned that the government’s move to assume control of the Damang Mine upon the expiration of its lease sends a troubling signal that could undermine Ghana’s reputation as a stable investment destination.
This intervention suggests a policy shift toward state takeover at the point of project maturity, erodes the confidence necessary for capital-intensive industries to thrive.
By asserting legal authority to decide the fate of expiring leases in this manner, the state risks being perceived as opportunistic rather than a strategic partner in the extractive sector.
“If the state chooses to step in only after those risks have been absorbed and the project has matured, it raises a fundamental question: Is Ghana sharing risk, or only claiming reward? Because real ownership is about sharing risk from day one.”
Joseph Adusei
Expanding on the broader policy implications, the shift in control over the Damang asset previously operated by Gold Fields highlights a disconnect between state ambition and the realities of mining economics.
In an industry where investments are measured in hundreds of millions of dollars and exploration cycles span 5 to 15 years, the early stages are characterized by high-risk, cash-negative phases involving drilling, feasibility studies, and massive infrastructure costs.
If the government only seeks “nationalisation or takeover” after these private-sector risks have been fully absorbed, it introduces a level of sovereign risk that could deter future capital inflows.
The Rising Specter of Sovereign Risk
The state’s refusal to grant a lease extension to Gold Fields forces a confrontation with the “predictability and transparency” that investors prioritize when evaluating jurisdictions.
Historically, Ghana has been a beacon of stability in West Africa, but the Damang situation introduces a variable of uncertainty regarding the longevity of private tenure.
When policy appears to change at the point of lease expiry, it creates an environment of “opportunistic intervention” that complicates the long-term planning required for environmental compliance and community development.
Shifting from Takeovers to Exploration Equity
To truly own its mineral wealth, Ghana must move away from post-maturity interventions and instead “mobilise capital and participate from exploration.”
Experts suggest that genuine partnership requires the state to have “skin in the game” during the most volatile periods of a mine’s life cycle.
By participating in the “upside and downside” from the beginning, the government would build actual technical capacity rather than simply claiming an asset once the “first ounce of gold is poured.”
Preserving Ghana’s Mining Reputation
The long-term strategy for the extractive sector must be anchored in a “partnership” model that respects the massive upfront commitments made by investors.
If the nation is to maintain its status as a mining-friendly hub, it must avoid actions that suggest it is only interested in “claiming reward” after private entities have navigated the high-risk phases.
Building a resilient mining sector requires a commitment to “stability and transparency,” ensuring that the rules of the game do not change just as a project begins to yield returns.
