Gold Fields has reached a transitional agreement with the Government of Ghana to continue operations at the Damang mine. This agreement follows the government’s initial rejection of Gold Fields’ lease renewal application, marking a departure from the previous practice of automatic lease renewals.
Under the new arrangement, Gold Fields will be granted a 12-month mining lease, subject to parliamentary ratification expected on May 16, 2025. During this period, the company will resume open-pit mining and conduct feasibility studies to assess the mine’s reserves and potential lifespan. Additionally, Gold Fields will continue processing existing stockpiles. The Ghanaian government has assured that this decision will not set a precedent and has committed to advancing discussions on the renewal of the Tarkwa mine lease, which is set to expire in 2027. The Damang mine, operational since 1997, produced approximately 135,000 ounces of gold in 2024, accounting for about 6% of Gold Fields’ total gold output. The company has been focusing on larger projects, such as the Salares Norte mine in Chile and the Windfall project in Canada, and has considered divesting from smaller operations like Damang. This transitional agreement underscores the evolving dynamics between foreign investors and host governments, highlighting the importance of regulatory clarity and mutual cooperation in sustaining mining operations.