Damang Mine sells 100% of first gold output to GoldBod, BoG in historic move

The Chief Executive Officer of GoldBod, Sammy Gyamfi, has announced a landmark development in Ghana’s mining and economic landscape, revealing that the Damang Gold Mine—owned by businessman Ibrahim Mahama—has sold 100 per cent of its first gold output to GoldBod and the Bank of Ghana to support the country’s national reserves.

Describing the move as a major milestone, Mr Gyamfi noted that the transaction represents a bold and strategic step toward strengthening Ghana’s gold reserves and improving macroeconomic stability. By channeling the entire initial gold production into state-backed institutions, the initiative is expected to boost the country’s foreign exchange buffers and enhance confidence in the local currency.

According to him, the development highlights a growing alignment between private sector operations and national economic priorities. He explained that such collaboration is crucial in a resource-rich country like Ghana, where gold remains one of the most important drivers of export revenue and economic growth.

Mr Gyamfi further emphasized that this arrangement supports the government’s broader strategy of leveraging gold resources to stabilize the economy, particularly in the face of global financial uncertainties and currency fluctuations. Strengthening gold reserves, he said, is a key component of efforts to reduce dependence on external borrowing and improve fiscal resilience.

He described the transaction as historic and unprecedented, noting that it is the first time in Ghana’s history that a privately owned mining company has committed its entire initial gold output to state institutions for the purpose of reserve accumulation.

“This has never happened before in Ghana,” he stressed, adding that the decision by the Damang Gold Mine sets a powerful example of how private enterprises can contribute directly to national development goals.

Mr Gyamfi expressed optimism that this model of cooperation could be replicated across the mining sector, encouraging other companies to align their operations with national interests. Such partnerships, he suggested, could significantly boost government revenue, strengthen the country’s reserve position, and enhance overall economic resilience.

The development is expected to have far-reaching implications for Ghana’s economic management, particularly in efforts to stabilize the cedi, improve balance of payments, and build a more sustainable financial future through strategic use of natural resources.