Gold Fields mining lease extension rejected, operations to cease by 18 April

In a move that could reshape Ghana’s mining landscape, the government has rejected Gold Fields’ application to renew the Damang Mining Lease, which is set to expire on Friday (18 April 2025).

The decision means that Abosso Goldfields Limited, the operator of the mine, must cease all operations and vacate the site by the expiry date.

The decision was communicated internally to staff and stakeholders through a memo from a senior executive at Gold Fields. Efforts are ongoing to engage the Minister of Lands and Natural Resources, Armah Kofi-Buah in hopes of reaching a resolution.

In the meantime, the company has begun scaling down production and initiating procedures for a safe and structured shutdown.

Gold Fields has reassured employees that its Tarkwa operations remain unaffected and called for continued focus from workers there.

A Management Committee has been set up to assess the fallout, explore options for resolution, and ensure that safety and worker welfare are prioritised throughout the transition.

The rejection has stirred fresh debate around Ghana’s mining policy and the future use of the Damang concession. The existing lease, originally granted on 18 April 1995, spans three decades and played a vital role in Ghana’s gold production.

The government currently holds a 10% stake in both the Tarkwa and Damang operations.

According to Gold Fields’ 2024 Annual Report, its Ghana operations accounted for 32% of total group production, underscoring the strategic importance of the country within its global portfolio.

With this development, attention now turns to whether a compromise can be reached or if Damang’s shutdown will mark the end of a significant chapter in Ghana’s mining history.