Workers at Damang Mines in the Western Region can heave a sigh of relief as the government has concluded an agreement with the parent company, Goldfields Ghana Limited, to keep the facility operational.

There had been fears that over 1,000 workers could lose their jobs following the failure to renew the company’s mining licence, which expired on 18 April.

However, a new transitional arrangement will ensure the continuation of operations by the current operators, with the potential for future Ghanaian ownership.

According to the new deal, Goldfields’ subsidiary, Abosso Goldfields Limited, will receive a new 12-month mining lease to continue open-pit mining operations.

“Under the new arrangement, Goldfields will resume open-pit mining during the transition period, safeguarding jobs and conducting feasibility studies to establish Damang’s reserves and mine life,” a statement released by the Minister for Government Communications, Felix Kwakye Ofosu, on 23 April, indicated.

As part of the transitional plan, existing stockpiles will continue to be processed under a joint management team comprising representatives from both the government and Gold Fields.

Prior to the agreement, Lands Minister Emmanuel Armah-Kofi Buah visited the mines to allay fears of job losses following the failed licence renewal.

“Today, we had to come and engage the workers of Goldfields Damang Mines to assure them of His Excellency President Mahama’s commitment to ensuring that, even in this transitional period, their jobs will be guaranteed. We are going to work with them to ensure the safety and sanctity of the plants and operations here,” he stated.

Without mincing words, Mr Buah emphasised, “Contractors and subcontractors who work here must be assured that this transition will not affect their commitments, agreements, and contracts that they have here.”

“Ultimately, it is to strengthen them, not to weaken anybody. The intention is to empower the communities here and to ensure continuity in operations,” he added.

Speaking on Joy News’ PM Express Business Edition, the Deputy CEO of the Minerals Commission defended the government’s decision to assume operational control of the mine.

“Last year, Tarkwa and Damang mines made over $600 million in profit. How much of that stayed in the country? Your guess is as good as mine,” he said.

He described Gold Fields’ conduct as exploitative, stressing that, instead of reinvesting in Ghana, the company chose to acquire assets in other countries.

“Instead of using the profit to develop the Damang mine, they were rather busy buying mines elsewhere, like Osisko in Canada. They bought another mine in Chile,” he said.

“They can’t tell me it’s not profit from Ghana. It’s difficult to move money out of Australia. But from Ghana, they had free will to move money around… We can’t continue on that path.”

The Minerals Commission boss also dismissed the notion that capital constraints justify the dominance of foreign companies in Ghana’s mining sector, stating that local capacity has grown substantially.

“Unlike those days when people couldn’t access funding, it’s now a thing of the past,” he insisted.

“BCM had very good Caterpillar financing. Engineers & Planners signed a $250 million deal with Caterpillar. Rockshore is purchasing equipment worth hundreds of millions to work in Ghana.”

Mr Tandoh stressed that the government is not on a mission to drive away all foreign mining firms.

“We are not saying we’re going to chase all mining companies away. No. We are going to support them to do their work,” he said.

However, he added that preferential treatment must be accompanied by accountability.

“After giving the 30-year lease to Goldfields, the government even bettered the situation for them with a development agreement. That agreement waived several tax liabilities, especially on fuel,” he said.

“While Ghanaians were complaining about fuel prices, these mines were enjoying tariff waivers.”

He accused the company of focusing on stockpile treatment in the last two years rather than actual mining.

“They’ve been taking free cash from Ghana without actually working. And this cannot continue. Ghanaians deserve better,” he declared.