Gold Fields CEO Flags Illegal Mining; Backs Ghana’s Push for Fairer Mining Returns but Stresses Investor Appeal
Chief Executive Officer of Gold Fields, Mike Fraser, has warned that Ghana’s gold mining sector continues to face significant social and environmental challenges from illegal mining activities, even as the government seeks to reshape regulations to ensure a greater share of benefits for citizens.
Speaking at the company’s half-year 2025 financial results presentation on Friday, August 22, Mr Fraser noted that high global gold prices have heightened the lure of illegal mining for local communities, with external actors also exploiting the situation.
“From a government point of view, it’s really difficult to meet all of the expectations of local communities. And when that plays out, illegal mining, particularly in this kind of gold price environment, becomes a rich avenue for communities to get into these activities,” Mr Fraser said.
He stressed, however, that the company’s flagship Tarkwa mine faces relatively lower exposure due to its low-grade ore, compared to some peer operators. “At Tarkwa, whilst we see it on the fringes, it is not as significant as some of our peer companies have got there,” he added.
On regulation, Mr Fraser underscored the importance of continuous policy reform, pointing out that mining frameworks designed 20 years ago may not meet current and future social demands. He acknowledged the government’s push to secure a fairer share of value for Ghanaians, while cautioning that reforms must also preserve Ghana’s attractiveness to international investors.
“We’ve got to find that fine balance of having a fair share return to Ghanaians, but at a level that still attracts international investment and justifies continued investment in these assets,” he stated.
The Gold Fields boss emphasised that Ghana stands out globally as a credible gold producer due to the presence of large-scale operators such as Newmont, AngloGold Ashanti, and Gold Fields itself, whose operating standards and scale provide stability despite the challenges.
Drawing comparisons with other African countries, Mr Fraser welcomed the government’s consultative approach on securing a fairer share of value returns on gold production for Ghanaians, describing it as “a very mature conversation” compared to damaging nationalisation policies elsewhere – referring to the successful 12-month lease extension of the Damang Mine provided by the Government to Gold Fields.
“It’s a much better outcome than the alternatives of what we’ve seen in some of our peer countries in Africa, where there’s just been a national grab for resource assets, and that is hugely damaging and will be damaging for decades to come.
