A growing dispute is unfolding in Ghana’s Western Region as the Catchment Area Community Alliance (CACA) pushes back against the planned closure of the Damang Mine by Heath Gold Fields Ghana Limited, citing economic risks, incomplete projects, and lack of transparency.
In a detailed response to a 120-day closure notice issued to the Ministry of Lands and Natural Resources, the community advocacy group has raised serious concerns about the mining company’s justification for shutting down operations.
Questioning the Closure Timeline
Gold Fields Ghana Limited announced that the Damang Mine would cease operations after its mining lease expired on April 18, 2024. However, CACA disputes the company’s narrative, arguing that the mine still contains economically viable reserves.
According to the group, multiple feasibility studies—including a bankable feasibility study—confirmed that additional gold reserves exist. These studies, they claim, supported a lease extension and continued operations rather than closure.
The group also highlighted that the government initially rejected the company’s lease extension application, raising questions about whether due process was followed in subsequent developments.
Unfinished Projects and Environmental Concerns
A major point of contention is the number of incomplete infrastructure and environmental projects tied to the mine’s closure obligations.
Key projects still unfinished include:
A Tailings Storage Facility (TSF), reportedly only 60–62% complete
The Huni Valley–Damang Water Treatment Plant, delayed due to financial constraints
Rehabilitation of mined-out pits and installation of safety infrastructure
CACA argues that these unfinished works pose both environmental and safety risks, especially as mining activities wind down.
Additionally, the group claims that significant funds—over $130 million—remain allocated for closure-related activities, raising questions about why critical projects have not been completed.
Economic Fallout and Job Losses
The potential closure has already begun to impact workers and the broader local economy.
CACA reports that: Over 1,500 direct employees have been affected, Contractors and service providers are owed substantial payments, and Local businesses dependent on mining activity are facing collapse
The group warns that the shutdown could trigger widespread unemployment and economic instability in the Prestea-Huni Valley municipality.
Community Compensation Disputes
Beyond employment concerns, compensation has become another flashpoint.
CACA alleges that compensation packages offered to affected workers are inadequate, particularly for long-serving employees. The group is calling for:
Improved severance packages, Fair valuation of years of services and Transparent negotiations with worker representatives
Allegations of Mismanagement
The alliance also accuses Gold Fields of financial and operational mismanagement, claiming that funds meant for mine development and closure were not properly utilized.
They also averred that project delays were due to poor planning rather than external constraints and the company failed to act in the best interest of host communities
While these claims have not been independently verified, they add to mounting pressure on both the company and regulators.
Call for Government Intervention
CACA is urging the Ministry of Lands and Natural Resources to intervene decisively. Their demands include:
A full audit of the Damang Mine’s financial and operational records
Completion of all outstanding environmental and infrastructure projects
Reconsideration of the mine closure if viable reserves remain
They argue that the mine represents a “significant economic asset” that should not be abandoned prematurely.
The dispute places the government in a difficult position—balancing investor confidence with community welfare and environmental responsibility.
If the closure proceeds without addressing these concerns, it could set a precedent for how mining exits are handled across Ghana.
On the other hand, delaying closure may require renegotiations with Gold Fields and potential policy adjustments.
For now, tensions remain high, and the future of the Damang Mine—and the communities that depend on it—hangs in the balance.
