Goldfields to restart Damang operations under new lease agreement with Ghana Government

Goldfields Ghana Limited has reached a landmark agreement with the Government of Ghana to resume mining operations at the Damang mine under a renewed lease.

The deal, announced today in Johannesburg, paves the way for increased local participation in Ghana’s resource-rich gold industry.

The new agreement grants Gold Fields a 12-month mining lease, allowing the company to recommence open-pit mining activities at the Damang site.

This short-term lease, which awaits ratification by Parliament when it reconvenes on May 16, 2025, is aimed at keeping the mine operational while laying the groundwork for a potential long-term transition of ownership to the people of Ghana.

President John Dramani Mahama highlighted that the renewed agreement with Goldfields will strengthen Ghana’s partnership with Goldfields while advancing our commitment to ensure greater Ghanaian ownership and benefit from our natural resources.

“This is an important day for Ghanaian mining as we strengthen our partnership with Gold Fields. Increased local participation and ownership in Ghana’s mining industry is a key part of Government’s commitment to creating wealth for Ghanaians. Goldfields 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.”

Mining activities at Damang had slowed in recent months, but with the new lease in place, Goldfields has committed to ramping up operations, increasing employment, and investing in further exploration.

A detailed bankable feasibility study to extend the life of the mine is also expected to be completed by the end of 2025.

During this interim phase, the company will continue processing existing surface stockpiles while securing permits necessary to restart full-scale mining.

The government, through the Ministry of Lands and Natural Resources, has pledged to support the permitting process to ensure a smooth resumption.

In a step towards deeper local involvement, both Goldfields and the Government of Ghana will form a joint asset transition team to explore future ownership structures. This initiative aligns with the government’s broader strategy of boosting Ghanaian control over key national assets.

The Chairman of the Goldfields Board, Yunus Suleman, stated that Goldfields has been a long-standing partner in Ghana’s development with over three decades of experience and a great track record in the country.

“Gold Fields has been operating in Ghana for more than 30 years and has developed a strong and positive track record of economic and social contribution to the country. We remain committed to operating in Ghana, and to continue contributing to the country’s mining expertise, development and shared prosperity for many years to come. The agreement with the Government is welcomed and is an opportunity for Damang mine to continue creating value and making a sustainable economic contribution to the communities surrounding Damang, under future ownership of the people of Ghana.”

The company also confirmed that operations at its Tarkwa mine, one of its largest sites in Ghana, remain unaffected.

However, preparations are already underway for lease renewal applications ahead of Tarkwa’s 2027 expiration.