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Gold Fields has announced a new agreement with the Government of Ghana to ensure a productive path forward for the Damang mine.
Damang is the smaller of Gold Fields' two operations in Ghana, with the Tarkwa mine being the second.
Under the agreement, Gold Fields will be granted a new 12-month mining lease for the Damang mine, subject to ratification by Ghana's Parliament on 16 May 2025.
Ghana assumed operational control of the mine after rejecting Gold Fields' lease renewal application earlier this month, breaking the tradition of automatic licence renewals.
Gold Fields will recommence mining activities during the new lease period, which is expected to increase employment and stimulate job creation.
The company will also advance a detailed bankable feasibility study to extend the mine's life by the end of 2025.
Additionally, the company will continue an infill exploration drilling programme to enhance mineral resource confidence. The mine will continue processing surface stockpiles in the interim.
The 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.”
Gold Fields and the Ghanaian Government will form a joint asset transition team to oversee the transfer of the Damang mine to Ghanaian ownership.
The company will also begin preparing lease extension applications for the Tarkwa mine as the current mining leases are set to expire in 2027.
Gold Fields board chairman 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.
“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.”
"Gold Fields reaches agreement with Ghana to continue operations at Damang mine" was originally created and published by Mining Technology, a GlobalData owned brand.