Gold Fields has confirmed it will officially relinquish ownership and operational control of the Damang Mine on April 18, 2026, after the Government of Ghana decided the asset should transition to Ghanaian ownership.
Contents
Lease Expiry and Transition ProcessFuture Potential of the Damang MineJobs and Economic ImpactBroader Industry Implications
The move concludes a 12-month lease extension granted after the mine’s original lease expired in April 2025. According to the company, the extension was intended to allow for a safe and orderly transfer while discussions about the mine’s future were finalised.
Lease Expiry and Transition Process
Speaking at a media roundtable on the company’s 2025 full-year results, Gold Fields CEO Mike Fraser said the company had applied for a renewal but government opted for local ownership.
“Our lease expired in April 2025. We applied for an extension, but the government indicated a preference for the asset to transition to Ghanaian ownership, which we accepted and thought made sense,” he stated.
Since July 2025, a transition team appointed by the sector minister has been working alongside Gold Fields’ on-site management to coordinate the handover. However, the company says it has not received formal communication regarding who will take over long-term operations.
From April 19, 2026, the transition team is expected to assume interim leadership and operatorship until a substantive operator is appointed.
Under Ghana’s mining laws, mineral assets revert to the state when a lease expires, leaving government responsible for determining future ownership and operational arrangements. Any new mining lease may require parliamentary approval.
Future Potential of the Damang Mine
As part of the lease extension conditions, Gold Fields completed and submitted a feasibility study to the Minerals Commission in late 2025. The study indicates:
- Potential mine life of at least nine additional years
- Projected annual production between 100,000 and 150,000 ounces
- Estimated capital investment requirement of $500 million to $600 million
Management noted that, based on prevailing gold prices, the mine would remain commercially viable. However, a future operator may adopt a different technical or financial strategy.
Jobs and Economic Impact
Operational continuity is a key concern. The Damang Mine directly employs around 500 workers, with an additional 1,000 to 1,500 contractors involved in mining services, logistics, and energy supply. In total, between 1,500 and 2,000 livelihoods depend on the operation.
Mr Fraser emphasised that both government and the transition team appear committed to avoiding disruption.
“Failure would occur if we don’t see a continuation of the asset,” he said, noting that the lease extension was structured specifically to prevent abrupt shutdowns that could impact workers and host communities.
Broader Industry Implications
The Damang exit represents a strategic shift in Gold Fields’ Ghana portfolio, coming as the company also engages authorities over the renewal of its Tarkwa mining lease.
Attention now turns to how quickly government will appoint a new operator and secure necessary approvals to ensure uninterrupted production beyond April 2026 — a development industry observers say will be closely watched as a test of policy execution and investor confidence in Ghana’s mining sector.
