Government, Gold Fields Reach 12-Month Lease Deal over Damang Mine
Accra, Ghana - 23 April, 2025 - Ghana's government and Gold Fields Ghana Limited have reached a landmark agreement on the future of the Damang Mine, following the expiration of the company's 30-year mining lease.
The deal, announced on Wednesday, April 23, allows Gold Fields' subsidiary, Abosso Goldfields Limited, to continue operating the mine under a new 12-month lease, pending parliamentary approval in May 2025.
Under the terms of the agreement, Gold Fields will resume open-pit mining at Damang while conducting feasibility studies to determine the mine's reserves and lifespan. The company will also continue processing existing stockpiles under the supervision of a joint management team comprising representatives from the government and Gold Fields.
The agreement is expected to safeguard jobs and ensure a smooth transition of the mine to Ghanaian ownership in the future. Both parties have pledged to work in good faith to secure a successful handover.
In a statement, Felix Kwakye Ofosu, Spokesperson to the President, said the government and Gold Fields would also engage in discussions on the renewal of the lease for the Tarkwa mine, which is due to expire in 2027. The two parties have committed to collaborating to promote Ghana's mining sector as a favorable investment destination.
“Under the new arrangement, Goldfields will resume open-pit mining during the transition period, safeguarding jobs and conducting feasibility studies to establish Damang’s reserves and mine life.
“At the same me, the processing of existing stockpiles will continue under the supervision of a joint management team composed of representatives from the Government of Ghana and Goldfields. The two parties will work in good faith to secure a successful transition and eventual transfer of a viable mine to Ghanaian ownership,'' portions of the statement read.
Source: Lead News Online
