By: Daniel Bampoe
A fierce constitutional battle is brewing over the Damang gold mine as three Members of Parliament from the New Patriotic Party (NPP) have dragged the government to court, accusing it of sidestepping parliamentary approval in its lease deal with Abosso Goldfields Limited.
The suit, filed on Wednesday, July 3, by Frank Annoh-Dompreh (MP for Nsawam-Adoagyiri and Minority Chief Whip), Nana Asafo Adjei-Ayeh, and Habib Iddrisu, is aimed at nullifying a one-year temporary mining lease granted to Abosso Goldfields—a subsidiary of Gold Fields Ghana—without prior parliamentary ratification.
According to the MPs, the lease violates Article 268(1) of Ghana’s 1992 Constitution, which requires all agreements relating to natural resource exploitation to receive legislative approval.
Government Assumes Control of Damang Mine
The controversy traces back to April 17, 2025, when the government, through the Ministry of Lands and Natural Resources, officially took over the Damang Mine in the Western Region after declining Gold Fields’ request to renew its 30-year lease.
The takeover was described as a strategic realignment to ensure that Ghana’s natural resources served national interests more directly.
In a statement at the time, the Ministry asserted that the government was shifting away from the “neo-colonial” practice of automatic license renewals, instead opting to re-evaluate existing mining concessions to maximize economic benefit and ensure broader Ghanaian participation.
The decision was seen as a bold move toward asserting more control over the country’s mineral wealth—particularly its lucrative gold sector.
12-Month “Lifeline” Sparks Legal Firestorm
After weeks of negotiation between Gold Fields and government officials, a breakthrough was announced on April 23.
The two parties agreed that Gold Fields would be granted a new 12-month lease to continue operations at Damang while both sides explored longer-term arrangements.
This interim deal was hailed by the company as a “productive way forward,” especially after uncertainty had loomed over the jobs of more than 1,300 employees.
The agreement, however, was made with the understanding that it would be sent to Parliament for ratification when the House reconvened on May 16, 2025.
Despite this, mining activities resumed before such ratification was secured—a move that the three MPs say is unlawful.
MPs Demand Court Intervention
In their suit, the plaintiffs are asking the High Court to declare the lease agreement unconstitutional and void.
They are invoking Articles 2(1) and 130(1) of the Constitution, which empower the judiciary to interpret and enforce constitutional provisions.
The MPs are requesting the court to:
1. Declare that the lease granted to Abosso Goldfields without parliamentary approval breaches Article 268(1).
2. Issue an order of mandamus compelling the Minister for Lands and Natural Resources to suspend all mining operations under the current lease.
3. Place an interlocutory injunction restraining Abosso Goldfields from continuing operations at Damang until Parliament ratifies the deal.
4. Provide any additional reliefs and legal costs as the court deems appropriate.
Wider Implications for Mining Governance
This case highlights growing tensions over transparency and accountability in Ghana’s extractive sector.
It raises questions about executive overreach and the constitutional safeguards designed to prevent unilateral decisions involving natural resource management.
While the government defends the move as a temporary measure to avoid economic disruption and preserve jobs, critics argue it reflects a broader pattern of bypassing legal procedures for expediency.
Legal experts note that if the court rules in favour of the MPs, it could set a major precedent for how future mining leases and resource agreements are handled in Ghana.
The Damang Mine saga now rests in the hands of the judiciary—caught between constitutional fidelity, economic urgency, and political rivalry.
The outcome could redefine how Ghana manages its natural wealth in an era where resource nationalism is gaining momentum.
