Gold Fields, a global mining company, has reached a new agreement with the Government of Ghana to secure the future of its Damang mine, one of its two operations in the country alongside the larger Tarkwa mine. The agreement, announced recently, grants Gold Fields a 12-month mining lease for Damang, pending approval by Ghana’s Parliament on May 16, 2025.

The mine is the smaller of Gold Fields’ two operations in Ghana.

Following the government’s earlier decision to assume operational control of Damang after rejecting Gold Fields’ lease renewal application, this agreement marks a shift from the previous practice of automatic renewals. Under the new lease, Gold Fields will resume mining activities, which are expected to boost local employment and create job opportunities in the region.

As part of the agreement, Gold Fields will conduct a comprehensive feasibility study by the end of 2025 to explore extending the mine’s operational life. The company will also continue an infill exploration drilling program to improve confidence in the mine’s mineral resources. In the interim, Damang will process existing surface stockpiles to maintain operations.

Ghana’s President John Mahama stated: “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.”

To facilitate the eventual transfer of Damang to Ghanaian ownership, Gold Fields and the government will establish a joint asset transition team. Additionally, the company is preparing lease extension applications for its Tarkwa mine, as its current leases are due to expire in 2027.

Yunus Suleman, Chairman of Gold Fields’ board, 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. 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.”