Government and Gold Fields reach transitional deal on Damang mine

The government and Gold Fields have agreed on a transitional plan for the Damang mine. This announcement was made by the presidency on Wednesday.

Last week, Ghana took operational control of the mine. This followed the rejection of Gold Fields' lease renewal application. The decision broke a tradition of automatically renewing licenses.

The presidency stated that a new 12-month mining lease will be issued. This lease is for a Gold Fields subsidiary and awaits parliamentary approval in May.

During this transition, Gold Fields will resume open-pit mining. They will also conduct feasibility studies to assess Damang's reserves and mine life.

Damang is smaller than Gold Fields' other operation in Ghana, which is Africa's leading gold producer.

Ghana's government and company representatives will oversee existing stockpile processing.

A source from Gold Fields commented, "This is far from ideal, but we accept it." The source was not authorized to speak publicly about the situation.

They added that assurances were given this would not set a trend. It also won't affect Tarkwa Mine's lease, so they are advised to apply now for certainty.

Both parties agreed to continue discussions about renewing Tarkwa's lease, which is due in 2027.

The source noted that Gold Fields' management is more concerned about Tarkwa’s lease due to its higher volumes.