Large scale mining companies in Ghana have taken significant labour force from agriculture due to the withdrawal of lands for mining activities in the mining communities. The study assessed the effectiveness and sustainability of Alternative Livelihood Programmes (ALPs) in Damang Gold Mining community in Ghana. They are however, unable to create enough employment opportunities for the people. However, they instituted programmes to sustain the local communities economically. Some of the interventions are Snail and Mushroom farming, Grass-cutter rearing, Gari Processing, livestock rearing, tie and dye making, etc. These programmes are referred to as Alternative Livelihood Projects (ALPs). Using a descriptive exploratory method, a structured questionnaire was administered to 80 people in five communities (Damang, Pieso, Abosso, Huni Valley, and Kyekyewere) within the mining communities. The data obtained was analyzed using the Statistical Package for Social Sciences (SPSS) version 20. The study revealed that inadequate funding, lack of ready market, low income, lack of training and monitoring, and lack of interest were the major challenges facing the projects. Based on the findings of the study, the following recommendations were made; Damang Gold Mine should intensify their monitoring and training of beneficiaries at the implementation stage to provide support for the projects to ensure their sustainability and the beneficiaries should form cooperatives to be able to access loans from banks.