Ghana and Gold Fields Reach Transitional Agreement on Damang Mine
Ghana’s government and Gold Fields have agreed on a transitional plan for the Damang mine following the country’s decision to assume operational control after rejecting the company’s lease renewal application—a break from the tradition of automatic renewals.
In a statement on Wednesday, the Ghanaian presidency announced that a new 12-month mining lease will be issued to a Gold Fields subsidiary, pending parliamentary ratification in May.
During the transition period, Gold Fields will resume open-pit mining activities and conduct feasibility studies to determine Damang’s remaining reserves and future mine life.
The Damang mine is the smaller of Gold Fields’ two operations in Ghana, Africa’s top gold producer.
The presidency also stated that representatives from both the government and the company will oversee the processing of existing stockpiles during the interim phase.
A company source, who was not authorized to speak publicly, described the situation as “far from ideal” but said Gold Fields was reassured that this would not set a precedent affecting other operations.
“They gave us assurance that this won’t be a trend and it won’t affect Tarkwa mine’s lease, and we are advised to apply even now so that Gold Fields can have certainty,” the source said.
Both sides also agreed to expedite discussions regarding the renewal of the lease for the Tarkwa mine, Gold Fields’ larger and higher-volume operation, which is due for renewal in 2027.
