Ghana Moves to Take Over Damang Mine, Orders Gold Fields to Exit

The Ghanaian government has ordered Gold Fields to halt operations at the Damang gold mine and vacate the site by April 18, when the company’s lease expires.

Gold Fields, a South African mining company, confirmed the order in a statement on Thursday. The company applied to extend the lease in December 2024 but was recently notified that the Minerals Commission of Ghana rejected the application.

Gold Fields said it has held several discussions with government officials to prove its application met all the legal requirements. The issue was first mentioned in the company’s 2024 annual report, which suggested that talks with the government were still ongoing. However, following the recent directive, the mining company will exit the mine.

The Damang mine produced 135,000 ounces of gold in 2024, making up about six per cent of Gold Fields’ total output. However, active mining had stopped, and the site only processed surface stockpiles.

Gold Fields has stated that it is preparing to shut down the mine safely and ensure the protection of its staff and equipment. The company added that operations at its nearby Tarkwa mine remain unaffected.

The mining group initially indicated it might pursue international arbitration but now appears focused on ongoing dialogue with the government to secure a favourable outcome.

The lease denial comes amid sensitive talks around a proposed merger between Gold Fields’ Tarkwa mine and AngloGold Ashanti’s Iduapriem operation. Discussions had stalled during Ghana’s 2024 elections.

Meanwhile, the Ghanaian government has also moved to enforce stricter controls in its gold sector. It recently ordered all foreign nationals involved in local gold trading to exit the market by April 30, 2025. The directive follows the passage of the Ghana Gold Board Act 2025, signed into law on April 2 by President John Dramani Mahama.

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