Damang Mine gets 12-month lifeline from government

Gold Fields Limited has made a significant agreement with the government. This deal gives the Damang mine a 12-month operational lifeline.

After extensive discussions, Gold Fields will receive a new mining lease for one year. Mining operations are set to resume during this period.

The agreement must be ratified by Parliament when it reconvenes on May 16, 2025.

Gold Fields called this breakthrough a “productive way forward” for Damang. The mine had faced uncertainty in recent months.

The government will grant Gold Fields a new mining lease for twelve months. During this time, Gold Fields will continue to operate the mine.

This lease allows the company to restart open-pit mining activities. They will also process surface stockpiles in the meantime.

Gold Fields confirmed that employment at the mine will be maintained and expanded. The restart of mining activities will create more jobs.

“The Company will safely recommence mining activities at Damang,” they stated. This ensures continued employment and job growth.

The Ministry of Lands and Natural Resources will support the mine’s efforts. They will help acquire all necessary permits for operations to fully resume.

A key part of the agreement is Gold Fields’ commitment to complete a feasibility study by 2025. This study aims to extend the life of the mine.

The company is committed to continuing its exploration drilling program at Damang. This could lead to a more sustainable future for the mine.

In a shift towards local ownership, plans are in place for Ghanaian control of Damang.

“Gold Fields and the Government of Ghana will each appoint representatives,” said the company. They aim to ensure successful transition of ownership to Ghanaians.

Both parties pledged transparency, sound governance, and open engagement during this process.

Gold Fields reassured stakeholders that its Tarkwa mine remains unaffected by developments at Damang.

“Gold Fields notes strong government support for continued operations at Tarkwa,” they stated. Preparations for Tarkwa’s lease extension applications due in 2027 will begin soon.

President John Mahama praised this agreement as landmark for Ghana's mining industry. He emphasized strengthening partnerships with Gold Fields is important for Ghanaian mining.

“Increased local participation and ownership is key to creating wealth,” he said.

Mahama highlighted that this partnership shows Ghana’s openness to investment and commitment to sustainable development.

“Gold Fields has a long history in Ghana, and we are pleased with our collaboration,” he added. “Ghana remains open for business.”

Yunus Suleman, Chairman of Gold Fields Board, echoed these sentiments about their commitment in Ghana.

“Gold Fields has operated here for over 30 years,” he noted, emphasizing their positive contributions to economic growth.

He stressed that renewed lease and transition plan can create value sustainably around Damang under future local ownership.