Government Denies Gold Fields’ Damang Lease Renewal, Mandates Closure by April 18

The Government has rejected Gold Fields’ application to extend its Damang Main Mining Lease, instructing the company to cease operations and vacate the site by April 18, 2025.

The decision, communicated by the Minerals Commission, has cast uncertainty over the future of one of the country’s key gold mining operations.

Gold Fields, a leading global gold producer, disclosed that the lease extension request was submitted in December 2024.

Despite what it describes as “extensive engagement” with authorities and full compliance with all statutory requirements, the company says it was notified of the rejection and is now preparing to shut down operations at Damang.

Although the company is working to safely wind down activities, the sudden closure could result in significant job losses and economic disruptions for surrounding communities that depend on the mine.

Industry watchers warn the decision could dampen investor confidence in Ghana’s mining sector.

Meanwhile, Gold Fields says it remains in ongoing discussions with the government to find a mutually beneficial path forward.

“The Company continues to seek ongoing engagement with the Government to secure the best outcome for all stakeholders,” it said in a statement.