Damang mine in Ghana to shut down
Gold Fields is set to shut down operations at its Damang gold mine in Ghana following the Ghanaian government’s decision not to extend the mine’s operating lease. The company, through its local subsidiary Abosso Goldfields, had applied for a 30-year renewal but was informed by the Minerals Commission that the application was denied.
Abosso Goldfields, the operator of the Damang mine, is majority-owned by Gold Fields Ghana (71.1%), with IAMGold holding an 18.9% stake and the Government of Ghana owning the remaining 10%. The Damang mining lease, which covers an area of 8,111 hectares including five exploration licenses and two mining leases, is set to expire on 18 April 2025.
Although Gold Fields maintained that all legal and regulatory criteria for renewal were met, the government instructed the company to cease operations and vacate the area by the lease expiry date. In preparation, Gold Fields is working on a responsible closure plan to ensure worker safety and secure high-risk operations.
Mining activities at Damang had already been halted in 2023 as the company focused on processing existing stockpiles. This move was part of the mine’s transition towards closure. Despite the setback, Gold Fields confirmed that this development does not affect its other operation in Ghana, the Tarkwa mine, which continues to run without disruption.
The company is also shifting its strategic focus to larger international assets, including the Salares Norte project in Chile and the Windfall project in Canada. The latter follows Gold Fields’ $1.39 billion acquisition of Canada-based Osisko Mining.
