The Government of Ghana will take over the Damang mine in April 2026 following the expiration of a one-year transitional mining lease with Gold Fields.

The arrangement, aimed at ensuring a smooth handover, was disclosed by Group Chief Executive Officer (CEO) Mike Fraser during a conference call with journalists and investors on Friday, August 22, while discussing the company’s half-year performance.

On April 23, the government announced an agreement with Gold Fields Ghana for a 12-month transitional lease, after Parliamentary approval allowed continued operations under Abosso Goldfields Limited while preparing for the handover. The lease, which is non-renewable, was explicitly designed to facilitate an orderly transition to state ownership.

“Gold Fields will continue to manage the mine during this period while working with a joint committee to explore ways to extend the mine’s life. The goal is to ensure a safe and orderly transition to a new owner,” Fraser said.

When asked if the company was considering retaining the asset, Fraser dismissed the idea, stating that transferring ownership had always been part of the plan due to the mine’s current asset profile.

“We had a plan to move the mine to a new owner because of its current status and remaining value,” he noted.

He also stressed that the decision on the mine’s future rests with the government: “Our responsibility is to ensure the mine is handed over in good condition.”

Fraser rejected claims that the company is relinquishing Damang to renew its soon-to-expire mining lease, explaining that Gold Fields remains committed to its other operations in Ghana, particularly Tarkwa.

“The government has asked us to come to the table, and we are committed to that process. We’ve invested heavily to extend Tarkwa’s life and intend to keep the operation running for the long term,” he added.

Earlier in May, the company announced it had paused its proposed joint venture with AngloGold Ashanti involving the Tarkwa and Iduapriem mines to focus on maximising Tarkwa’s potential as a standalone asset.

“We have operated here for 30 years, and we intend to continue for decades to come,” Fraser reiterated.

Gold Fields posted strong financial and operational results for the first half of 2025. Attributable production rose 24% to 1,136koz, keeping the company on track to meet its annual guidance. Damang is expected to reach commercial production in the third quarter and steady-state production by the fourth quarter of 2025.

Revenue rose 64% to US$3.48 billion, up from US$2.24 billion during the same period in 2024, driven by a 17% increase in gold sales and a 40% rise in gold prices. No fatalities were recorded across operations, compared to two incidents in the first half of 2024, which the company had previously described as an “unacceptable safety performance.”

Background

Parliament earlier approved a one-year transitional lease between the government and Abosso Goldfields Limited for continued operations at Damang in the Wassa West District of the Western Region. The initial lease was expected to expire in April 2025 but was extended to April 2026 after stakeholder consultations.

Moving the motion for ratification, Lands and Natural Resources Minister Emmanuel Armah Kofi Buah stressed that the lease carried no option for further extension, transfer, or mortgage beyond April 2026.

Months ago, tensions rose at the Damang Mine as workers feared job losses after news of a government takeover. The Ghana Mine Workers’ Union, representing over 1,000 employees, threatened protests but was assured of job security.

“We want to assure the hardworking employees, contractors, and service providers at Damang that your dedication has been the backbone of this mine, and it will remain indispensable. Valid contracts will be honoured, wages paid, and operations sustained as we work to regularise arrangements under State stewardship,” the Minister said.

The decision to assume direct operational control came after Abosso Goldfields Limited failed to meet critical requirements for a lease renewal, including declaring verifiable mineral reserves, presenting a technical programme, and making financial provisions for exploration.

Despite these setbacks, the government is determined to maintain the mine’s contribution to the economy. “We recognise the importance of Damang Mine to the local economy and the country as a whole. We are committed to ensuring the mine continues to operate efficiently and effectively,” the Minister added.

To ensure a seamless transition, the government has developed a plan to preserve jobs, support local businesses, and maintain safety and infrastructure. Community engagement and transparency will remain central throughout the process.

“Regular updates will be provided to keep all stakeholders informed,” Buah assured, adding that the takeover aligns with Ghana’s broader goal to ensure mineral wealth contributes more directly to national development.