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Gold Fields, Ghana reach agreement on Damang Mine lease extension

Gold Fields Limited has announced a significant step forward in the future of its Damang mine in Ghana, following a new agreement with the Government of Ghana that aims to benefit employees, local communities, stakeholders, and the country as a whole.

After extensive discussions, Gold Fields and the Government of Ghana have agreed to a productive way forward for the Damang mine, with the following key developments:

• The government will grant a new 12-month mining lease to Gold Fields, allowing continued operation of the mine. This lease will be subject to parliamentary ratification when Parliament reconvenes on 16 May 2025.
• During this lease period, Gold Fields will resume open-pit mining in line with a submitted mining programme, maintaining current employment and creating additional jobs. The Minister of Lands and Natural Resources has committed to supporting the process by facilitating the necessary permits. In the meantime, surface stockpiles will continue to be processed at Damang.
• The company will also complete a detailed bankable feasibility study by the end of 2025 to assess the long-term potential of the mine. This includes ongoing infill exploration drilling to enhance mineral resource confidence.
• In alignment with the government’s goal to expand local participation and ownership in the mining industry, a joint asset transition team will be established. Representatives from both Gold Fields and the government will collaborate to ensure the mine’s successful transition to Ghanaian ownership, guided by principles of transparency, sound governance, and open engagement.
• Gold Fields also confirmed that operations at its Tarkwa mine remain unaffected. The company will begin preparing lease renewal applications for Tarkwa, which are due in 2027.

RELATED:
Gold Fields to halt Damang operations as Ghana rejects lease renewal

His Excellency President John Mahama emphasised the importance of the agreement, stating: “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.

“Gold Fields has a long and positive history in Ghana, and we are pleased to be working with them to safely and sustainably operate the Damang mine and ultimately transition it to the people of Ghana. Ghana remains open for business and welcomes investment. Working side by side with global and local companies, we believe that we can create partnerships that are beneficial and sustainable,” said Mahama.

Yunus Suleman, Chairman of the Gold Fields Board, echoed the sentiment: “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. We remain committed to operating in Ghana, and to continue contributing to the country’s mining expertise, development and shared prosperity for many years to come. 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.”

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Mining Review Africa
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Mining Review Africa

Mining Review Africa is a platform promoting advancement and sustainable development in African mining, providing insights on technology, finance, and industry trends through engagement with mining companies and suppliers.