The Government of Ghana has officially declined Gold Fields Ghana Limited‘s application to extend the Damang Main Mining Lease, a decision that will compel the company to cease operations at the site.
In an internal memo addressed to employees, Elliot Twum, Senior Vice President and Managing Director at Gold Fields, expressed disappointment over the government’s decision.
“In the absence of a mining lease, the Company is unable to continue operations at Damang beyond 18 April 2025.”
Elliot Twum, Senior Vice President and Managing Director at Gold Fields
Mr. Twum added that the company has tabled further proposals with the Minister of Lands and Natural Resources in an effort to resolve the situation.
Gold Fields has initiated a phased reduction in production to ensure an orderly and safe shutdown of activities.
The company has also established a Management Committee tasked with assessing the implications of the government’s decision and exploring potential solutions.
This committee will evaluate the social and economic impact on employees, partners, and local communities, while prioritizing safety and security during the transition.
Twum reassured employees that operations at Tarkwa, the company’s other major mining site in Ghana, would remain unaffected.
“We encourage all our people there to remain focused on maintaining safe and productive operations.”
Elliot Twum, Senior Vice President and Managing Director at Gold Fields
The reasons behind the government’s refusal to renew the Damang lease remain undisclosed, fueling speculation among industry analysts.
Some suggest the decision may be linked to regulatory reforms, environmental concerns, or strategic shifts in Ghana’s resource management priorities.
Others point to broader efforts to assert greater national control over mineral wealth, aligning with calls for resource sovereignty across Africa.
Gold Fields Workers Feels the Impacts
The pending closure of the Damang mine presents a serious economic concern for communities in the Prestea-Huni Valley Municipality, where the mine has served as a major employer and driver of development.
Local vendors, small businesses, and service providers tied to mining activities are also expected to feel the ripple effects.
Gold Fields has indicated it will engage local leaders and community representatives in the coming weeks to discuss the path forward and to provide updates on support measures for displaced workers.
“Our immediate priorities are to ensure the safety and security of our people and understand the implications of Government’s decision.”
Elliot Twum, Senior Vice President and Managing Director at Gold Fields
The company aims to mitigate adverse effects through dialogue and support measures.
Gold Fields Ghana was quick to clarify that the Damang closure will not impact operations at Tarkwa, the company’s other major mining site in Ghana.
The Tarkwa mine is currently one of the largest gold producers in the country and is expected to remain fully operational.
The rejection of Gold Fields Ghana Limited’s application to extend the Damang Main Mining Lease represents a turning point for Ghana’s mining sector.
As the nation navigates the complexities of resource management, the decision underscores the need for balancing economic development with sustainability and equity.
For Gold Fields, the focus now shifts to managing the shutdown process and mitigating its impact on employees and communities.
For Ghana, the decision offers an opportunity to redefine its approach to natural resource governance, ensuring that the benefits of mining are more equitably distributed.
The coming weeks will be critical in shaping the future of the Damang Mine and the broader mining industry in Ghana.
This development, communicated to the company marks a pivotal moment for one of Ghana’s most significant mining operations, with far-reaching implications for the industry, local communities, and the national economy.
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