Gold Fields secures mining extension lease for Damang mine in Ghana

Gold Fields Limited has secured a new 12-month mining lease for operations at the Damang mine in Ghana. This development comes after the initial rejection by the government of Gold Fields’ application to extend its mining licence, coupled with an order to cease all mining activities at Damang by April 18.

The newly granted lease will enable Gold Fields to safely recommence mining operations at the site, pending formal ratification by Ghana’s Parliament, scheduled for May 16. Until that ratification is complete, the company will focus on processing surface stockpiles to maintain some level of production and operational continuity.

Damang mine

Gold Fields emphasized its commitment to taking all necessary and reasonable steps to restart openpit mining activities at Damang. The company underscored its dedication to preserving the jobs of its employees, supporting local communities, and ensuring that the economic benefits of its operations continue to flow to the surrounding regions. Moreover, the Minister of Lands and Natural Resources has assured Gold Fields of the government’s full support in facilitating the acquisition of the required permits for the resumption of mining activities. This collaboration is expected to create a smoother pathway for restarting operations without further interruptions, while strengthening the relationship between the government and the mining sector.

In addition to resuming mining, Gold Fields has revealed plans to finalize a detailed, bankable feasibility study by the end of the year. The study aims to explore options to extend the life of the Damang mine, focusing particularly on an infill exploration drilling programme intended to increase confidence in the mineral resource estimates. This strategic move demonstrates Gold Fields’ long-term vision for Damang and its commitment to investing in the sustainability of its operations in Ghana. Since halting active mining at Damang in 2023, the company has relied solely on processing stockpiled ore, maintaining a scaled-down level of activity while evaluating its future at the site.

The Damang mine, which commenced operations in 1997, has played a vital role in Gold Fields’ West African portfolio. It has historically been a key contributor to the company’s overall gold production. The ability to secure a new lease and plan for future expansions marks a critical turning point for Damang and signals a renewal of confidence in the mine’s potential. Gold Fields’ proactive approach to securing its future at Damang reflects broader industry trends where mining companies must navigate complex regulatory landscapes and maintain strong government relations to ensure operational stability.