Three lawmakers – Minority Chief Whip Frank Annoh-Dompreh, Nana Asafo Adjei-Ayeh, and Habib Iddrisu – have filed a lawsuit against the Attorney General, Minister for Lands and Natural Resources and Abosso Goldfields Ghana Limited.
They are challenging what they describe as an unlawful mining lease agreement.
Filed on Wednesday, July 3, the suit accuses the state of breaching Article 268(1) of the 1992 Constitution by granting a 12-month Temporary Lease Agreement to Abosso Goldfields without prior parliamentary approval.
The MPs insist that such a lease, covering mining rights, must be submitted to Parliament for ratification before taking effect.
Gov’t takes over Damang Mine
On April 17, government assumed operational control of the Damang Mine, a concession held by Abosso Goldfields Limited, a subsidiary of Gold Fields Limited.
The move follows the rejection of the application by Gold Fields Limited to have its 30-year mining lease at the facility extended for another 30 years.
The government’s action, according to a statement by the Ministry of Lands and Natural Resources, represented a crucial step in Ghana’s economic reset, ensuring that gold reserves directly benefited citizens and contributed to long-term prosperity, easing uncertainty over the future of over 1,300 workers of the company.
Read also: Lands Minister directs Gold Fields to vacate Damang Site as gov’t takes control
“This decision aligns with the government’s policy shift away from the neo-colonial practice of automatic licence renewals for mining in Ghana, focusing instead on a comprehensive reassessment of mining licences to maximise national benefit,” the statement said.
Unconstitutional agreement
On April 23, Gold Fields Limited reached a significant agreement with government that gives the Damang mine a 12-month operational lifeline.
After extensive discussions between the two parties, a new mining lease will be granted to Gold Fields for a year, with mining operations set to resume during this period.
The agreement was to be subjected to ratification by Parliament when it reconvenes on 16 May 2025.
Read also: Damang Mine gets 12-month lifeline from government
In a statement issued by the company, Gold Fields described the breakthrough as a “productive way forward” for Damang, which had faced uncertainty in recent months.
“The Government of Ghana will grant a new mining lease to Gold Fields for the Damang mine, for twelve months, during which time Gold Fields will continue to operate the mine,” the company said.
This will pave the way for renewed operations and potential Ghanaian ownership.
A statement from the Presidency issued by Minister of Government Communications, Felix Kwakye Ofosu, confirmed this
Read also: Government and Gold Fields strike historic deal on Damang Mine transition
But the Minority parliamentarians say, this agreement was unconstitutional as it did not go through the due parliamentary process.
According to the writ, the plaintiffs are seeking several declarations and orders from the court.
First, they want the court to rule that the lease granted to Abosso Goldfields without parliamentary scrutiny violates the Constitution.
Second, they are requesting a mandamus order to compel the Lands Minister to halt all mining activities under the said lease until proper procedures are followed.
They are also asking the court to place an injunction on Abosso Goldfields, preventing the company from starting or continuing operations at the Damang Mine until Parliament approves the deal.
The plaintiffs are invoking Articles 2(1) and 130(1) of the Constitution to ground their action, arguing that this is a matter of constitutional interpretation and enforcement.
They are further asking the court for any other reliefs deemed fit, as well as an award of costs.
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