Gold Fields has confirmed it will formally give up ownership and operation of the Damang Mine on April 18, 2026, following a government decision for the asset to transition to Ghanaian ownership.
The exit concludes a 12-month lease extension granted after the mine’s original lease expired in April 2025, a move the company said was intended to facilitate a “safe and seamless” handover.
Speaking during a media roundtable on the company’s 2025 full-year results on Thursday, CEO Mike Fraser said Gold Fields had applied for a lease renewal upon expiry. However, government subsequently indicated its preference for the asset to revert to Ghanaian 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 said.
He also noted that a ministerially appointed transition team has been working alongside Gold Fields’ on-site management since July 2025 to coordinate the handover, adding that Gold Fields has not received formal communication from the sector minister regarding who will assume long-term operatorship after its exit.
The company expects the transition team to assume interim “leadership and operatorship” from 19 April 2026. However, the appointment of a substantive operator remains a government decision.
“We do not have any clear insights into what the minister’s intentions are post that. A new operator would need to be appointed and issued with a mining lease to continue operations — a process that could require parliamentary approval, he said.
Under Ghana’s mining framework, the asset reverts to the state upon lease expiry, leaving government to determine its future ownership and operating structure.
Feasibility Study Points to Further Mine Life
Gold Fields also confirmed completion of a feasibility study on Damang, a commitment tied to the 12-month extension. The study was submitted to the Minerals Commission and copied to the minister at the end of 2025.
Based on the company’s internal assessment, the Damang Mine could support at least nine additional years of operations, with projected annual production of between 100,000 and 150,000 ounces. The study also estimates that sustaining this extended mine life would require capital investment in the range of US$500 million to US$600 million, with the operation expected to remain profitable over the assessed period, assuming prevailing gold price conditions hold.
Management cautioned that these projections reflect Gold Fields’ planning assumptions and that any incoming operator could adopt a different technical or commercial model.
Livelihoods and Continuity in Focus
Beyond ownership considerations, the company framed continuity of operations as the central objective of the extension period.
Damang directly employs approximately 500 staff, with an estimated 1,000 to 1,500 contractor roles linked to mining, services, and energy supply. In total, between 1,500 and 2,000 livelihoods depend on the operation.
Mike Fraser said both government and the transition team are aligned on avoiding operational disruption.
“Failure would occur if we don’t see a continuation of the asset,” he noted, underscoring that the lease extension was designed to prevent abrupt stoppages affecting workers, contractors, and host communities.
Broader Portfolio Implications
The Damang exit represents a significant shift within Gold Fields’ Ghana portfolio, as the company simultaneously engages authorities on the renewal of the Tarkwa mining lease.
For investors and sector observers, attention now turns to how quickly government appoints a successor operator and secures the necessary approvals to ensure uninterrupted production beyond April 2026, a key test of policy execution and continuity risk within Ghana’s mining sector.
