Gold Fields Limited, has been instructed by the Government of Ghana to “cease operations and vacate” its Damang mine ahead of an April 18 expiry of its lease, the company has said in a statement Monday. According to the company, it had applied for an extension of the Damang Main Mining Lease in December 2024 but received notification from the Minerals Commission that the said application was rejected.
The South Africa-based mining conglomerate said it had began extensive engagement with relevant Ghanaian authorities since its lease extension application was rejected and pursuing all avenues to seek reversal of the decision. Meanwhile, Gold Fields which operates mines in Australia, South Africa, Ghana, Chile, Canada and Peru, wound up operations at Damang in 2023 characterised by a “planned reduction of output” while evaluating options to extend life at the mine through development of known reserves and enhance optionality.
The company, which Government of Ghana owns a 10% free-carry shareholding of its mines, has however assured its stakeholders that developments at Damang do not affect its ongoing operations at Tarkwa where it has entered into an agreement to merge with AngloGold Ashanti’s Iduapriem mine — aiming to create Africa’s largest gold mining complex. That agreement is now awaiting a decision by the Mahama Administration.
Source: ceditalk.com