An unspecified number of employees may lose their jobs as Gold Fields Ghana prepares to shut down operations at its Damang Mine by Thursday, April 18, following the government's refusal to renew its mining lease.

The company, in a notice dated April 12, announced that it is unable to continue operations at Damang in the absence of a valid lease and must vacate the mining area by the expiration date.

“This means that starting today, and over the weekend, we will initiate a phased reduction in production and take steps toward ensuring a safe and orderly shutdown of current mining activities at Damang,” the statement read.

Efforts to secure an extension of the lease continue, with the company submitting further proposals to the Ministry of Lands and Natural Resources in hopes of a resolution.

However, Gold Fields says preparations are underway to comply with the government’s directive, while urging staff to remain calm and productive.

The company has assured its workers, business partners, and the Damang host community that it is taking steps to mitigate any negative effects. A management committee has been set up to assess the situation, explore alternative solutions, and examine how the government's decision might impact employees and the future of the mine.In a significant move to tackle illegal mining, the incumbent government in March announced the revocation of all small-scale mining licenses issued after December 7, 2024.

This decision followed the presentation of a comprehensive report by a Technical Committee, jointly set up by the Ministry of Lands and Natural Resources and the Ministry of Environment, Science, and Technology, to review the current small-scale license regime and recommend ways to address the growing menace (galamsey)

Gold Fields emphasized that the development does not affect operations at its Tarkwa site, and encouraged workers there to maintain focus on ongoing activities.

“We are fully committed to engaging constructively with all relevant stakeholders—especially our people—over the early part of next week,” said the notice signed by Elliot, the Executive Vice President and Head of Gold Fields West Africa.

The company pledged to maintain open communication with staff and stakeholders in the coming days as it seeks further clarity and resolution.

In reaction to the recent development, Isaac Andrews Tandoh, Deputy Chief Executive Officer of the Minerals Commission, noted that the country now has a rare opportunity to redefine the trajectory of its extractive industry and assert greater national control over its mineral wealth.

“This is not a crisis; it is a clarion call, and we must now prioritise Ghanaian investors and consortia who have the capacity and commitment to operate responsibly and reinvest in our communities. This is about long-term national interest, not just short-term revenue,” he stated.Gold Fields is one of the largest private sector companies in Ghana, controlling 90% of both the Tarkwa and Damang gold mines.

The Government of Ghana owns the remaining 10% through a free-carry interest. Gold Fields took over the Tarkwa mine from the State Gold Mining Company in 1993 and acquired Damang mine in 2002.

Gold Fields contributes significantly to the development of the country through job creation, taxes and royalties, community and infrastructure investments, as well as local procurement and enterprise development.