The Ghana Mine Workers’ Union (GMWU) is urging the government to publicly outline its mining policy direction to prevent growing confusion among industry stakeholders. The union warned that the lack of clear guidance is creating uncertainty for investors, workers, and communities, potentially undermining confidence and progress in the sector. A transparent policy roadmap, they say, is crucial for sustainable industry development
GMWU has called on the government to urgently disclose its policy direction for the mining industry, emphasizing that the lack of clarity is causing uncertainty among stakeholders, especially investors. This call comes in the wake of the recent communication from government that it had declined an extension of the Damang Main Mining Lease held by Gold Fields, which is set to expire on April 18, 2025.
The issue surrounding the Damang mining lease has sparked concerns, particularly within the mining community, as Gold Fields, one of the country’s leading mining companies, faces the possibility of halting operations in Damang. In an interview with The Brand Focus Africa, Mr. Abdul-Moomon Gbana, General Secretary of the Ghana Mineworkers’ Union, stated that while the expiration of the lease is a legal matter, the law also provides for its renewal. He pointed out that both the government and the company should sit down to negotiate terms for the lease extension in order to avoid a potential shutdown that could affect workers, businesses, and communities in the region.
However, Mr. Gbana raised a broader concern: the need for the government to clearly communicate its mining policy to prevent confusion and instability within the industry. He emphasized that a failure to disclose the government’s long-term vision for the mining sector could undermine investor confidence and lead to doubts about the future of mining operations in the country.
“If the government has a policy position or a policy direction going forward on how they intend to run the industry, they might also ensure full disclosure,” Gbana said. “A full disclosure of your intention is not only important and useful to internal stakeholders, i.e., the citizens of this country, but also to external stakeholders, including the investor community.”
According to Mr. Gbana, the lack of policy clarity could lead to increased uncertainty among current and potential investors, both foreign and domestic. This uncertainty extends to local businesses and workers who depend on the mining sector for their livelihoods. He further argued that if the government’s policy is to encourage greater local content, it should be clearly communicated to all stakeholders, ensuring that future lease negotiations and renewals are transparent.
Mr. Gbana also noted the broader implications of this situation, emphasizing that the rejection of lease renewals could set a precedent that negatively impacts not only large multinational companies but also local mining businesses. The uncertainty created by such decisions could discourage future investments in the sector and harm the overall economic stability of the mining industry in Ghana.
As the 18 April deadline approaches, the GMWU has called for the government to engage in open dialogue with all relevant stakeholders, including Gold Fields, to resolve the matter amicably. The union also expressed concerns about the potential loss of jobs and the negative impact on local businesses that depend on the Damang mine’s operations.
“The government must not only look at the immediate interest of its citizens but must also create a predictable and secure environment for businesses and investors,” Mr. Gbana concluded.
With the mining lease issue still unresolved, industry stakeholders are urging the government to provide a clear roadmap for the future of mining in Ghana. Without such clarity, the country risks undermining its reputation as a stable and predictable environment for mining investment.
