File photo of a gold mine
South African mining firm, Gold Fields Limited has announced it will continue to negotiate with Ghana’s government for a resolution, including potential arbitration, following an order by the government to cease operations at its Damang gold mine.
In a statement released on April 14, 2025, the firm acknowledged a communication by Ghana’s Minerals Commission to wind down activities at Damang by April 18, 2025, following the government’s rejection of its application to extend the mining lease.
“The government has instructed Gold Fields to cease operations and vacate the lease area by the 18th of 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 statement read.
The company said it is still engaging with the government, including potential arbitration, to secure a favourable outcome for all stakeholders.
“The company continues to seek ongoing engagement with the government to secure the best outcome for all stakeholders,” the statement added.
The company had already halted active mining in 2023 and was processing stockpiles.
The 30-year lease, granted in 1995, expires on April 18. Gold Fields had applied for a renewal in December 2024 but was denied without public disclosure of specific reasons, though the Minerals Commission cited unmet statutory requirements under Ghana’s mining laws .
Damang produced 135,000 ounces of gold in 2024 (6% of Gold Fields’ total output).
The phased shutdown will prioritize safety and environmental protocols, with no immediate job cuts announced .
However, according to Gold Fields, its larger Tarkwa mine remains unaffected .
Gold Fields’ shares fell 3.5% on the NYSE and 6.3% on the JSE amid the news, despite the company’s pivot to focus on high-growth projects in Chile and Canada.
See the statement below:
ID/MA
