Mine Workers Union Opposes Full Gov’t Takeover of Damang Mine, Advocates Joint Venture with Gold Fields

The Ghana Mine Workers Union has voiced strong opposition to a full government takeover of the Damang Mine, urging instead for a strategic joint venture with current operator Gold Fields. According to Accra Street Journal, the union believes a collaborative approach would better safeguard jobs, enhance operational efficiency, and attract sustained investment in the mining sector.

As the government prepares to assume control of the Damang Mine, the Ghana Mine Workers Union is vehemently opposing the full takeover, citing capital injection and workers’ welfare concerns.

The government through the Minerals Commission refused the application by Gold Fields to renew its lease due to the failure of the company to meet some operational and regulatory requirements.

As Gold Fields packs out of the Damang Mine, the government has announced that it is preparing to take over the mine, assuring workers, contractors, and service providers of its commitment to respect their employment and contracts.

Amid this development, the Ghana Mine Workers Union believes the government is treading on a dangerous path by assuming full control of the Damang mine.

General Secretary of the Union, Abdul-Moomin Gbana, has questioned the government’s ability to inject the significant capital required to keep the mine running effectively. With the numerous financial obligations of the government, he doubts if it can inject the required capital to keep the mine productive and sustainable in a manner that will benefit the state economically and protect workers’ welfare.

Instead of the full takeover, the Union is rather proposing a collaborative arrangement with former operator Gold Fields to ensure the sustainability and profitability of the operation.

“It will require capital injection into the mine. That is why I am saying that if we don’t manage it smartly, we might run the risk of not making the very best out of the Damang mine,” Gbana stated. “If you don’t have capital investment, you will be pretending to be running the mine, and that is not good for us.”

“Already we know the government is saddled with a lot of challenges. Even payment of public servants, we all know the current conditions we find ourselves,” he added. “If government is going to be at the forefront driving the Damang mines to turn around, I can assure you that it will require a lot of effort to do so.”

He therefore believes, “We can always leverage opportunities available to us and Gold Fields, in my view, is a good opportunity. We can get to the table with Gold Fields and have some arrangements that will benefit us.”

The Union’s position adds a critical dimension to the national conversation on the Damang Mine transition. While the government has assured continuity of operations, job security, and honoring of existing service contracts, industry players and labor representatives are pushing for a long-term solution that guarantees both sustainability and national benefit.

Meanwhile, the Africa Centre for Energy Policy (ACEP) has called on the government to halt its planned takeover of the Damang Mine, urging a return to legal processes and transparent engagement over what it describes as a rushed and flawed decision.

The think tank in a statement warned that the current approach by the Ministry of Lands and Natural Resources risks setting a dangerous precedent that could undermine investor confidence, tarnish Ghana’s international reputation, and derail the rule of law in the management of the country’s mineral wealth.

Last Updated on April 19, 2025 by samboad