Gold Fields secures temporary lease extension for Damang mine

…as plans for local ownership transition continue

Gold Fields Limited has reached an agreement with the government to extend the mining lease for its Damang operation for a further 12 months, paving the way for a restart of open-pit mining while laying the groundwork for a long-term transition to local ownership.

The South African-listed miner announced the development, stating that the new lease will ensure  continued employment at the mine and allow the company to complete a comprehensive feasibility study aimed at securing Damang’s future. The agreement is subject to ratification by Parliament when it reconvenes on May 16, 2025.

Under the terms of the deal, Gold Fields will resume mining activities at Damang in accordance with a submitted mining programme. The company will also process existing surface stockpiles during the interim phase.

“The new mining lease will be subject to ratification by Parliament… During the new lease period, the Company will safely recommence mining activities at Damang,” Gold Fields said in a statement.

“Gold Fields will take all reasonable steps to restart open-pit mining, and the Minister of Lands and Natural Resources will provide the necessary support in obtaining the requisite permits,” the statement further read.

The Damang mine has been one of the major gold-producing assets in the Western Region. Gold Fields, which has operated in the country for over three decades, says it remains committed to the country and will continue to invest in geological exploration and resource expansion during the lease period.

A bankable feasibility study to extend the life of the mine is expected to be completed by the end of 2025. In parallel, the company will pursue infill drilling programmes to enhance mineral resource confidence.

The agreement also includes a strategic provision aligned with the government’s policy objective of enhancing local participation in the mining sector. Gold Fields and the Government will jointly appoint representatives to an asset transition team that will oversee a potential transfer of ownership to Ghanaian stakeholders.

“Gold Fields and the Government of Ghana commit to the principles of transparency, sound governance, and open engagement throughout this process,” the company stated.

President John Mahama welcomed the agreement, describing it as a milestone in Ghana’s effort to build indigenous capacity in the mining industry.

“This is an important day for Ghanaian mining as we strengthen our partnership with Gold Fields. Increased local participation and ownership in Ghana’s mining industry is a key part of the Government’s commitment to creating wealth for Ghanaians,” he said.

Chairman of the Gold Fields Board, Yunus Suleman, reaffirmed the company’s long-term interest in Ghana and its role in supporting local development.

“Gold Fields has been operating in Ghana for more than 30 years and has developed a strong and positive track record of economic and social contribution to the country,” he said.

“The agreement with the Government is welcomed and is an opportunity for Damang mine to continue creating value and making a sustainable economic contribution to the communities surrounding Damang, under future ownership of the people of Ghana,” he added.

The company also clarified that the new lease for Damang has no bearing on operations at its nearby Tarkwa mine, where production continues uninterrupted. Gold Fields is expected to submit lease renewal applications for Tarkwa ahead of the current lease expiry in 2027.

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