Damang Gold Mine Fate: Ghana Mineworkers' Union Urge Government to Explore Joint Venture with Gold Fields
The destiny of Ghana's Damang gold mine has been placed in the spotlight since the closure of mining operations and refusal by the government to extend Gold Fields' lease. In response, the Ghana Mineworkers' Union (GMWU) is appealing to the government to enter into a joint venture with the global mining giant to resume operations, preserve jobs, and maintain the socio-economic stability of the area.
Gold Fields, which mined at Damang for many decades, closed current mining in 2023 and turned to milling stockpiles as it prepared for ultimate closure of the mine. The lease expired in April 2025, and because the government opted not to renew, Gold Fields then set about winding down in full at the mine.
The realization has resulted in increased alarm among the laborers, villagers, and stakeholders. GMWU, in their case, has remained firm, referring to the closure of the mine as likely to lead to mass unemployment as well as economic decline in these local communities whose economy is premised on operations in the mine for decades.
"The Damang closure doesn't only hurt the employees directly hired at the site, but the employment of thousands indirectly dependent on the continuous operation of the mine," said a union representative. "We are therefore appealing to the government to explore the possibility of a joint venture with Gold Fields. This could salvage the value of the residual assets while the livelihoods can be preserved."
The union puts forward the view that a partnership would enable it to sustain mining under a new management structure, with shared control and benefits. Such an arrangement, they maintain, would not only help keep production going, but also provide a blueprint for any public-private endeavor in the future of Ghana's extractive sector.
With the lease coming to an end, the ownership of the mine has reverted back to the state. The government has indicated that it wants to run the mine responsibly and find new uses for the land. Whether or not it will continue to do business with Gold Fields or attempt something else is yet to be determined.
Gold Fields, meanwhile, has been reconfiguring its portfolio, focusing on large, more profitable projects overseas. Despite its Damang pullout, the company has demonstrated sufficient environmental responsibility. Over 500 hectares of the site's previously disturbed lands have been restored and a $25 million bond committed to fund additional environmental rehabilitation work.
The reclamation work of the company has been appreciated by members of the local community, and the reclaimed land has opened up opportunities for agriculture and other forms of sustainable land use. Secure, long-term jobs, however, remain a major cause of concern.
Mineworkers' Union believes that pure closure of Damang mine without looking at potential partnerships is an opportunity lost. The union insists that Gold Fields technical capability coupled with state control can form a mutually beneficial and sustainable operation ensuring both economic and environmental sustainability.
As events are unfolding, stakeholders demand transparency, conversation, and inclusive participation. The choice between Damang's fate might serve as a precedent for how Ghana manages such cases in the rest of its mining industry. To the GMWU and the majority of Ghanaians, a joint venture would not only mean a commercial agreement but a lifeline to a whole people.
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