His analysis, detailed in an interview with The High Street Journal, frames the dispute as a matter of contractual compliance rather than ideological expropriation.

Under Ghanaian law, mining leases automatically revert to the state upon expiry, requiring companies to renegotiate terms for renewal. Gold Fields’ failure to conduct sufficient exploration before the lease lapsed weakened its case for an extension, according to Dr. Donkor, a former Power Minister and mining consultant. “The lease has lapsed. That is the critical issue,” he said, emphasizing that the government assumed control only after the legal expiry date. “This is not resource nationalism. It is standard practice.”

The African Center for Energy Policy (ACEP) had raised concerns, urging clarity on whether Ghana intends to revive 1970s-style nationalization policies that destabilized its mining sector. Dr. Donkor dismissed these fears, noting that the government’s transitional 12-month lease for Gold Fields allows continued operations while preparing for eventual Ghanaian ownership. The arrangement, pending parliamentary approval, includes a joint management team to oversee open-pit mining and feasibility studies.

Central to the dispute is Gold Fields’ operational approach. Dr. Donkor highlighted the company’s decision not to invest in exploration despite declining output at Damang, which fell to 135,000 ounces in 2024 from 240,000 ounces in 2018. “Companies must demonstrate proven reserves to justify lease extensions,” he said. “Without that, renewals cannot hinge on sentiment.”

The resolution reflects broader efforts to increase local participation in Ghana’s mining sector, a priority underscored by President Mahama’s policies. While the government revoked 87 foreign-held gold trading licenses earlier this year to curb smuggling, analysts caution that balancing investor confidence with resource sovereignty remains delicate.

Gold Fields’ strategic shift toward assets in Chile and Canada has further fueled perceptions of reduced commitment to aging African mines. Yet the transitional deal suggests a pragmatic middle ground, preserving jobs while aligning with Ghana’s goal of retaining greater mineral wealth domestically.

As Ghana consolidates control over its gold trade through initiatives like the Ghana Gold Board, the Damang case offers insights into evolving resource governance. Dr. Donkor’s emphasis on legal adherence over ideology may reassure investors, but sustained transparency will be crucial as the state navigates competing demands of economic equity and global partnership.