Abosso Goldfields Sues Government Over Damang Mine Lease Dispute - ACEP Confirms
Accra, Ghana - 18 April, 2025 - Ghana's government is facing a legal challenge from Abosso Goldfields Limited over the decision to terminate the company's lease for the Damang gold mine.
According to the Africa Centre for Energy Policy (ACEP), the mining firm has initiated court proceedings, citing concerns over the abrupt termination of its operations.
Reports suggest that the government rejected Abosso Goldfields' application for lease renewal and directed the company to cease operations and vacate the site by April 18.
However, ACEP has warned that this move could have implications for Ghana's business environment.
Ben Boakye, Executive Director of ACEP disclosed that the company has notified the government of its intention to seek legal recourse.“They have invoked that. They’ve actually informed the government. That’s their right hand of the agreement. And that’s why we say that this is—you can negotiate,” Boakye confirmed in an interview on Citi FM’s Eyewitness News on Thursday, April 17.
The dispute highlights the complexities surrounding mining operations in Ghana, where the government seeks to balance its interests with those of foreign investors.
Abosso Goldfields' decision to take the government to court has sparked debate about the rule of law and contractual obligations in Ghana's mining sector. The outcome of this case could have significant implications for the country's reputation as a destination for foreign investment.
Sources indicate that the government's decision to terminate the lease may be linked to concerns over revenue generation and environmental impact. However, ACEP's Boakye argues that such decisions should be made within the framework of the law, rather than through arbitrary actions.
“I’ve made a point that processes—so unless you are saying that the legal processes that are laid out there in law are irrelevant, and therefore, because of the ownership of the resource, you can take any decision at any point. I don’t think that’s a good business relationship for any country to get into.''
Source: Lead News Online
