The agreement follows extensive discussions between the company and government officials, culminating in a renewed partnership to sustain and transition the asset.
Gold Fields said in an official release to the Ghana News Agency, Thursday, that the understanding reached was expected to benefit employees, local communities, stakeholders, and the people of Ghana.
Under the terms of the agreement, the Government will grant Gold Fields a new 12-month mining lease for the Damang Mine.
During this period, the company will restart open pit mining activities in accordance with a mining programme submitted to the Government. In the interim, the mine will continue processing surface stockpiles.
The lease, which is expected to be ratified by Parliament on May 16, 2025, provides legal backing for the continued operation of the mine.
The Minister of Lands and Natural Resources will support the permitting process to enable a safe and timely resumption of full mining activities.
Commenting on the agreement, Chairman of the Gold Fields Board, Mr Yunus Suleman, said: “This agreement reflects our enduring commitment to Ghana and our belief in the long-term value of the Damang Mine.
“We are proud to work alongside the Government in a way that supports jobs, communities, and national development objectives.”
In support of extending the life of the mine, Gold Fields will complete a detailed bankable feasibility study by the end of 2025.
This will be complemented by an infill exploration drilling programme to enhance confidence in the mine’s mineral resources.
To advance the Government’s goal of increasing local ownership in the mining industry, a joint asset transition team will be formed.
This team, comprising representatives from both parties, will appoint advisors and collaborate to ensure a transparent and well-governed transition of the mine to Ghanaian ownership.
President John Dramani Mahama described the development as an important milestone in strengthening the partnership between Ghana and Gold Fields, the release said.
He stated: “Increased local participation and ownership in Ghana’s mining industry is a key part of Government’s commitment to creating wealth for Ghanaians.
“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. Working side by side with global and local companies, we believe that we can create partnerships that are beneficial and sustainable.”
Gold Fields clarified that the agreement concerning Damang did not affect its operations at the Tarkwa Mine, which continue uninterrupted.
The company said it would begin preparing its lease renewal applications for Tarkwa, with the current leases due for renewal in 2027.
The Damang Mine, located in Ghana’s Western Region, has been a key part of Gold Fields’ operations for decades.
The lease paves the way for renewed investment, sustained employment, and eventual transition to Ghanaian control under a cooperative framework.
GNA
