Natural resource governance expert and mining consultant, Ing. Wisdom Edem Gomashie, has issued a strong call to the Government of Ghana to prioritize transparency and legal adherence to avoid judgment debts as the transition period for the Damang Mine approaches its conclusion.
Ing Gomashie’s warned that while boosting local participation in the mining sector is a laudable goal, any move to acquire or nationalize assets like the Damang Main Lease must be governed by clear, predictable procedures to prevent the perception of “state capture” and protect the nation’s reputation.
“I support all initiatives that will boost local participation in our mining sector. However, procedure must be clear to avoid any State Capture that may damage the intent. Nationalisation or localization must be grounded in policy and law, not just at the point of lease expiry.”
Ing. Wisdom Edem Gomashie
The urgency of this call stems from the impending end of a one-year transition period, initiated by H.E. President John Dramani Mahama between Abosso Goldfields Limited and the state, which is set to expire on April 18, 2026.
Ing. Gomashie, highlighted that the initial rejection of Gold Fields’ lease extension in 2025 had already triggered international scrutiny and raised fears of significant judgment debts.
He argued that for the government’s localization agenda to be sustainable, it must be rooted in long-term policy and the Minerals and Mining Act, rather than being “triggered only at the point of lease expiry,” which creates a climate of uncertainty for foreign investors.
Risks of Premature Nationalization and Judgment Debts
According to Ing. Gomashie, an arbitrary or non-transparent takeover of the Damang Mine could have severe negative repercussions for Ghana’s economy.
He pointed to the precedent set by the International Centre for Settlement of Investment Disputes (ICSID) rulings in Tanzania, where similar state actions led to penalties nearing US$200million.
For a country that currently “struggles to mobilize even US$10–20 million for small-scale exploration,” the consultant warns that abruptly assuming the massive financial and technical burden of a large-scale operation like Damang is a high-risk gamble.
He further noted that if investors perceive lease renewals as being driven by “discretion rather than by clear legal frameworks” under LI 2176, it could lead to Declined production and weakened investor confidence.
Building Capacity Through Strategic Partnerships
Rather than an outright takeover, Ing. Gomashie advocates for a “phased and earned” approach to localization. He suggests that the state should explore joint venture (JV) arrangements or production-sharing models, citing successful global examples like Botswana’s OkavangoDiamond Company and Chile’s Codelco.
He noted that “Government should instead renegotiate terms” and consider forming strategic consortia with capable indigenous firms such as Engineers and Planners, RocksureInternational, and Rabotec to partner with multinationals.
This model ensures that the state gains technical expertise without the immediate need to independently manage the complex “institutional and financial capacity” required for large-scale mining.
A Roadmap for Sustainable Mining Governance
To secure the future of the sector, Ing. Gomashie is urging the government to “urgently complete the review of the National Mining Policy.”
This updated framework should clearly define the localization vision and provide “legal backing” through expedited amendments to the Minerals and Mining Act, 2006 (Act 703).
He maintains that any re-award of the Damang lease must strictly follow a “transparent tender process” as stipulated under Regulation 258(c) of LI 2176.
Ultimately, the goal should be to move beyond “mere sloganeering around resource nationalism” to achieve a balance of “continuity, stability, and improved national benefit” that protects both the state’s interests and the investor’s security.
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