On 24 April, Gold Fields Limited (JSE, NYSE: GFI) reported that it had reached an agreement with the Government of Ghana for a productive way forward for the Damang mine that is expected to benefit employees, local communities, the mine’s stakeholders and the people of Ghana.

Gold Fields has been engaged in extensive discussions with the Government of Ghana, which have yielded a constructive agreement for the Damang mine as follows:

  • The Government of Ghana will grant a new mining lease to Gold Fields for the Damang mine for twelve months during which time Gold Fields will continue to operate the mine. The new mining lease will be subject to ratification by parliament when it reconvenes on 16 May 2025;
  • During the new lease period, the company will safely recommence mining activities at Damang, in line with the mining programme that has been submitted to the Government of Ghana, ensuring continued employment and an increase in jobs created with the restart of mining activities. 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 to support recommencement of mining operations. In the interim, the Damang mine will continue to process surface stockpiles;
  • Concurrently, Gold Fields will progress and finalise, by the end of 2025, the detailed bankable feasibility study to extend the life of Damang mine. Gold Fields is committed to continuing with the infill exploration drilling programme to improve Mineral Resource confidence at the mine;
  • In support of the Government of Ghana’s objective to increase meaningful local participation and ownership in the Ghanaian mining industry, Gold Fields and the Government of Ghana will each appoint representatives to a joint asset transition team, who will appoint advisors and will work collaboratively to ensure the successful transition of the asset to ownership by the people of Ghana. Gold Fields and the Government of Ghana commit to the principles of transparency, sound governance, and open engagement throughout this process; and
  • Gold Fields notes the Government of Ghana’s strong support for continued operations at Tarkwa mine and will commence preparation of the applications for the Tarkwa mine lease extensions, which are due for renewal in 2027, noting that the current developments at the Damang mine do not affect operations at Tarkwa mine, which continues to operate as normal.

His excellency, president of Ghana, John Mahama said, “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 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.”

Chair of the Gold Fields board, Yunus Suleman said, “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.”

Source: supplied by Gold Fields