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Gold Fields Secures 12-Month Lease Extension for Ghana's Damang Mine Amid Parliament Approval Pending
ByAinvest
Thursday, Apr 24, 2025 7:50 am ET1min read
Gold Fields has been granted a 12-month lease extension for its Damang mine in Ghana, subject to parliamentary ratification on May 16. The extension will allow the company to continue operating the mine.
Gold Fields (NYSE: GFI) has been granted a 12-month lease extension for its Damang mine in Ghana, subject to parliamentary ratification on May 16. The extension allows the company to continue operating the mine, which is the smaller of its two operations in the country [1].The Damang mine has been under Ghanaian operational control since the government rejected Gold Fields' lease renewal application earlier this month, breaking the tradition of automatic license renewals [2]. Despite this setback, the company has secured a new 12-month mining lease, which will recommence mining activities and stimulate job creation in the region [2].
Gold Fields will also advance a detailed bankable feasibility study to extend the mine's life by the end of 2025. Additionally, the company will continue an infill exploration drilling program to enhance mineral resource confidence and process surface stockpiles in the interim [2].
The President of Ghana, John Mahama, welcomed the agreement, stating that it is an important day for Ghanaian mining and that increased local participation and ownership are key to creating wealth for Ghanaians. Gold Fields and the Ghanaian government will form a joint asset transition team to oversee the transfer of the Damang mine to Ghanaian ownership [2].
The company will also begin preparing lease extension applications for the Tarkwa mine, as the current mining leases are set to expire in 2027 [2]. Gold Fields' board chairman, Yunus Suleman, expressed that the agreement is an opportunity for the Damang mine to continue creating value and making a sustainable economic contribution to the communities surrounding it, under future ownership of the people of Ghana [2].
The extension of the lease for the Damang mine does not affect operations at the Tarkwa mine, which continues to operate as normal [3].
References:
[1] https://seekingalpha.com/news/4434762-gold-fields-granted-12-month-lease-extension-for-ghanas-damang-mine
[2] https://www.mining-technology.com/news/gold-fields-damang-mine-ghana/
[3] https://www.morningstar.com/news/dow-jones/202504241676/gold-fields-gets-12-month-lease-extension-for-ghanas-damang-mine
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