Gold Fields has announced a phased shutdown of its Damang Mine in Ghana after the government declined to renew its mining lease. The decision marks a significant shift for the company’s operations in the region and is expected to impact production, employment, and local economic activities. The company is working on a transition plan to manage the closure responsibly.
Gold Fields Limited has announced plans to commence a phased shutdown of its Damang Mine, following the government‘s decision not to renew the company’s mining lease, which expires on April 18, 2025.
In a statement, the company confirmed that without an approved lease extension, it cannot legally continue operations at Damang beyond the expiry date and will be required to vacate the site.
Gold Fields disclosed that it has submitted further proposals to the Minister of Lands and Natural Resources in hopes of finding a resolution. However, it noted that, in the meantime, production will be gradually scaled down to facilitate a safe and orderly shutdown.
“Beginning today and over the weekend, we will start reducing production activities and take necessary steps to safely wind down operations at Damang, unless the issue is resolved or we receive further guidance,” the statement said.
The company stressed that the development will not impact operations at its Tarkwa Mine, encouraging employees there to remain focused on safety and productivity.
To address concerns raised by employees, business partners, and host communities, Gold Fields has set up a management committee to urgently assess the situation, explore possible solutions, and evaluate the potential impact on jobs.
“Our immediate priorities are the safety and security of our people, understanding the full implications of the government’s decision including any future plans for the Damang site and identifying how we can mitigate any adverse effects,” the company said.
Gold Fields has operated the Damang Mine since August 1997, playing a key role in Ghana‘s gold mining industry.
Also, the company runs the Tarkwa Mine, with the Government of Ghana holding a 10% interest in both assets.
Last Updated on April 15, 2025 by Senel Media
