Gold Fields to close Damang mine in Ghana after lease renewal rejection
finance.yahoo.com
GlobalData
Tue, April 15, 2025 at 2:40 AM PDT 2 min read
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Gold Fields is set to cease operations at its Damang gold mine in Ghana following the government's decision not to renew the mining lease.
The mining company had sought a 30-year extension to the lease through its subsidiary Abosso Goldfields but was notified of the rejection by the Minerals Commission of Ghana.
Abosso Goldfields, the Ghanaian registered company that operates the Damang mine, is 71.1% owned by Gold Fields Ghana, with IAMGold holding 18.9% and the Ghanaian Government owning the remaining 10%.
The Damang site includes five prospecting licences and two mining leases, covering a total area of 8,111ha.
Gold Fields, which also owns the Tarkwa mine in Ghana, has been in discussions with authorities, asserting that its lease extension application met all statutory requirements.
Despite these efforts, the lease, set to expire on 18 April 2025, was not extended.
In a press statement, Gold Fields said: “The Government has instructed Gold Fields to cease operations and vacate the lease area by the 18th April on expiry of the lease. Gold Fields is therefore preparing to safely and responsibly cease operations and ensure the safety and security of our people and high-risk operations.
“The company continues to seek ongoing engagement with the Government to secure the best outcome for all stakeholders. These developments at Damang do not affect operations at Tarkwa, which remain ongoing.”
Gold Fields had already stopped mining activities in 2023, focusing on processing stockpiles as part of its end-of-life plan for Damang, reported Reuters.
The company is shifting its focus to larger projects such as the Salares Norte mine in Chile and the Windfall project in Canada.
In a separate development, Ghana has directed all foreign entities involved in its gold trading sector to exit the market by 20 April 2025, reported Reuters, citing a statement issued by a newly formed government agency.
The move comes as the country aims to restructure the way it purchases gold from small-scale miners to increase national revenue and curb smuggling activities.
Previously, both local and foreign companies holding export licences were authorised to buy and export gold sourced from artisanal or small-scale mining operations. This system, however, is now due to be replaced by a centralised model.
Under the new framework, only the recently established Ghana Gold Board (GoldBod) will have the authority to purchase, sell, assay and export artisanal gold.
As a result, all previously issued licences for such activities have been rendered invalid.
Foreigners, however, will have the option to apply "to buy or take-off gold directly from the GoldBod", reported the news agency, citing a statement.
Last year, Gold Fields acquired Canada-based mineral exploration company Osisko Mining for $1.39bn (R29.61bn).
"Gold Fields to close Damang mine in Ghana after lease renewal rejection" was originally created and published by Mining Technology, a GlobalData owned brand. |
