Government and Gold Fields Limited have reached a breakthrough agreement that will not only restart operations at the Damang mine but also lay the groundwork for the mine’s eventual transition into Ghanaian hands.

“This is an important day for Ghanaian mining,” declared President John Mahama, as he hailed the agreement as a “strengthened partnership” that reflects his government’s commitment to “creating wealth for Ghanaians.”

The newly struck deal grants Gold Fields a 12-month mining lease for the Damang mine, during which the company will resume mining operations.

The lease, which is subject to parliamentary ratification when the House reconvenes on May 16, 2025, allows for an immediate return to work for the mine’s current workforce and promises job creation with the recommencement of open-pit mining.

“Gold Fields has a long and positive history in Ghana,” President Mahama said.

“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.”

In the meantime, the mine will continue processing surface stockpiles as Gold Fields works to resume full operations.

The company will also fast-track a detailed bankable feasibility study to determine the long-term viability of the mine and extend its operational life. That study is expected to be completed by the end of 2025.

As part of the wider agreement, both the Government of Ghana and Gold Fields will appoint representatives to a joint asset transition team.

This team will be tasked with overseeing the planned transfer of ownership of the mine to the people of Ghana.

Advisors will be appointed, and both parties have pledged a process anchored in transparency, sound governance, and open engagement.

“This agreement is welcomed,” said Gold Fields Board Chairman Yunus Suleman.

“It is an opportunity for the 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.”

The announcement represents a major policy turn for the Mahama administration, which has been pushing for “meaningful local participation and ownership” in Ghana’s resource-rich mining sector.

The Damang mine agreement signals a potentially replicable model, balancing continued foreign expertise with long-term national interest.

Gold Fields has committed to taking “all reasonable steps” to restart open-pit mining during the lease period and will receive the support of the Minister of Lands and Natural Resources in securing the necessary permits.

The company also noted that operations at its Tarkwa mine remain unaffected and that preparations will begin shortly for lease extensions due in 2027.

With over 30 years of continuous operation in Ghana, Gold Fields emphasised its ongoing commitment to the country’s mining development and economic growth.

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