A recent report indicates that the Minerals Commission’s decision to reject the renewal of Goldfields’ Damang Mine lease stemmed from the company’s failure to meet the requirements outlined in the Minerals and Mining Act, 2006 (Act 703). Section 44 of the Act details the conditions and processes for mining lease renewal, including timely application, submission of a proposed program of mineral operations, and material compliance with obligations imposed by the Act.
Section 44 of the Minerals and Mining Act, 2006 (Act 703) specifies the conditions and procedures for renewing a mining lease.
The key points are:
(1) A mining lease holder may apply to the Minister for an extension of the lease term at any time, but no later than three months before the lease’s initial term expires, or within a shorter timeframe permitted by the Minister. The application must be made in the prescribed format and can request an extension of up to thirty years for any or all contiguous blocks covered by the lease and for any or all minerals included in it.
(2) Applications submitted under subsection (1) must include a proposed mineral operations program.
(3) If the application is properly submitted and the lease holder has substantially fulfilled the obligations outlined in this Act regarding the lease and related activities, the Minister is required to grant the lease extension under specified written conditions.
(4) If a lease holder has applied for an extension and the lease would otherwise expire, the lease will remain in effect concerning the land covered by the application until a decision is made on the application.
(5) Any disputes between the Minister and the lease holder regarding matters arising under this section will be resolved in accordance with section 27.
However, the specific requirement(s) Goldfields failed to meet remain unclear, as the government has yet to release an official statement regarding the matter. This follows the government’s rejection of Goldfields Company Limited’s request for a 30-year mining lease extension for the Damang Mine, initially granted in April 1995 and set to expire on April 18, 2025.
Background
Government has denied Gold Fields’ request to extend its lease for the Damang Mine. In a memo to staff, the company noted that the existing lease is set to expire on April 18, 2025, and all attempts to renew it have not been successful to date.
Gold Fields is actively in discussions with the Minister of Lands and Natural Resources to seek a resolution to the issue. Meanwhile, the company has advised its employees to start preparing for the lease’s expiration.
Response From Experts
Experts have urged the government to publicly disclose the reasons for its decision. Policy analyst Dr Steve Manteaw sees no issue with the government’s refusal to renew the Damang mining lease for Goldfields. In a Facebook post, Dr. Manteaw emphasized that the key concern should be who will be granted the lease after Goldfields’ exit, stressing transparency and national interest. He wrote: “I see no issue with the refusal to renew the Goldfields Damang lease, since the company itself began deinvesting in the project two years ago and directed all subsidiaries and suppliers to demobilize.
The sudden interest in the mine, now expressed by Goldfields, is strange and should serve as a caution to the regulator to avoid a repetition of past mistakes. “For us as citizens, our interest at this moment lies in what happens to Damang—and that decision ought to be made transparently and in our collective national interest. Shalom,” he added. An internal memo to Goldfields workers indicated that measures will be taken to ensure their protection as a result of the lease refusal. Goldfields has stated that they are working with the government to secure approval, but are preparing to relinquish the lease on April 18, 2025, upon its expiration.
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