Gold Fields Limited has reached a significant agreement with government that gives the Damang mine a 12-month operational lifeline.

After extensive discussions between the two parties, a new mining lease will be granted to Gold Fields for a year, with mining operations set to resume during this period.

The agreement will be subject to ratification by Parliament when it reconvenes on 16 May 2025.

In a statement issued by the company, Gold Fields described the breakthrough as a “productive way forward” for Damang, which had faced uncertainty in recent months.

“The Government of Ghana will grant a new mining lease to Gold Fields for the Damang mine, for twelve months, during which time Gold Fields will continue to operate the mine,” the company said.

This lease period will allow the company to recommence open-pit mining activities in line with a pre-submitted mining programme, while continuing to process surface stockpiles in the interim.

Gold Fields also confirmed that employment at the mine will be maintained and expanded with the restart of mining activities.

“The Company will safely recommence mining activities at Damang… ensuring continued employment and an increase in jobs created with the restart of mining activities,” the statement said.

The Government, through the Ministry of Lands and Natural Resources, will support the mine’s efforts by facilitating the acquisition of all requisite permits needed for operations to fully resume.

A key part of the new agreement is Gold Fields’ commitment to finalising a detailed bankable feasibility study before the end of 2025, aimed at extending the mine’s life.

The company said it “is committed to continuing with the infill exploration drilling programme to improve Mineral Resource confidence at the mine.”

This step could pave the way for a more long-term future for Damang, which has been a key part of Gold Fields’ Ghanaian portfolio.

In a notable shift towards local ownership, the agreement outlines plans for a collaborative transition of the Damang mine to Ghanaian control.

“Gold Fields and the Government of Ghana will each appoint representatives to a joint asset transition team,” the company stated.

“They will appoint advisors and will work collaboratively to ensure the successful transition of the asset to ownership by the people of Ghana.”

Both parties pledged to uphold the values of “transparency, sound governance, and open engagement” during the transition process.

Gold Fields also reassured stakeholders that its flagship Tarkwa mine remains unaffected by the Damang developments.

“Gold Fields notes the Government of Ghana’s strong support for continued operations at Tarkwa mine,” the statement said.

The company added that preparations for Tarkwa’s lease extension applications, due in 2027, will begin shortly.

President John Mahama praised the agreement, describing it as a landmark for the Ghanaian mining industry.

“This is an important day for Ghanaian mining as we strengthen our partnership with Gold Fields,” he said.

“Increased local participation and ownership in Ghana’s mining industry is a key part of Government’s commitment to creating wealth for Ghanaians.”

President Mahama said the partnership shows Ghana’s openness to investment and its commitment to sustainable, inclusive development.

“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.”

Yunus Suleman, Chairman of the Gold Fields Board, echoed the President’s sentiments.

“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,” he said.

“We remain committed to operating in Ghana, and to continue contributing to the country’s mining expertise, development and shared prosperity for many years to come.”

He emphasised the potential impact of the renewed lease and transition plan.

“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.”