Minerals Commission Rejects Gold Fields’ Damang Lease Extension Request
The Minerals Commission has rejected an application by JSE-listed Gold Fields for a 30-year extension of its mining lease for the Damang concession, directing the company to cease operations and vacate the site by April 18.
Gold Fields, through its indirect subsidiary Abosso Goldfields Limited, submitted the lease extension request in December 2023. However, the Commission has declined the application, bringing an end to operations at the site which has been mined since 1997.
Following the rejection, Gold Fields has initiated engagements with relevant authorities to clarify the basis of the decision and to confirm that all statutory requirements for the lease extension were duly met.
“Gold Fields is preparing to safely and responsibly cease operations and ensure the safety and security of people,” the company stated, adding that it will continue to engage with the Government of Ghana to secure the best possible outcome for all stakeholders.
Mining activities at Damang were halted in 2023, with the company shifting to processing stockpiled ore. Gold Fields had also not allocated any capital for exploration aimed at extending the mine’s life.
The Damang mine, located in the Western Region, has historically been a key component of Gold Fields’ portfolio, contributing significantly to the company’s production in West Africa.
The Minerals Commission’s directive marks a turning point in Gold Fields’ operations in Ghana, where the company also operates the Tarkwa mine under a separate lease agreement.
