In order to promote a transparent and legally directed conclusion to the continuing conflict with Abosso Goldfields Limited (AGL), the Africa Centre for Energy Policy (ACEP) has urged the government to halt preparations to take over operations at the Damang gold mine.
Benjamin Boakye, Executive Director of ACEP, called on the government to “exercise restraint, renew dialogue, and pursue a legally guided resolution that protects the interests of both the state and investors” in a statement released on Thursday, April 17.
Following its decision to not extend AGL’s mining lease, which is set to expire on April 18, 2025, the government plans to take over the mine on Friday, April 18. Concerns over possible interruptions and the decision’s wider effects on investor confidence in Ghana’s mining industry have been raised.
Boakye cautioned that taking sudden action without following the proper legal procedures might lead to international litigation, harm Ghana’s standing, and compromise the rule of law. “A hasty and contentious decision not only jeopardizes global litigation and reputational harm, but also erodes investor confidence and the rule of law,” he continued.
AGL has been charged by the Minerals Commission with violating procedural rules, particularly by negotiating the lease renewal directly with the Minister for Lands and Natural Resources rather than via the Commission. Isaac Tandoh, the Commission’s deputy chief executive officer, called this a procedure violation.
However, ACEP advised against interpreting the circumstances as a step toward nationalization. According to the statement, investor fear has been heightened by the Minister’s own comments and recommendations made by public authorities.
“Duty, adherence to the law, and a sincere interest in Ghana’s long-term mineral wealth should be reflected in the government’s approach to this matter,” ACEP said.
The policy think group is now urging the government to reevaluate its stance in order to prevent any long-term effects on the nation’s mining sector and foreign investment opportunities.
See the complete statement below.
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