BTA2023 Gold Fields has confirmed that preparations to hand over the Damang gold mine to the Government of Ghana are progressing as planned, ahead of the scheduled April 2026 transfer following the non-renewal of its lease.
The transition, supported by a 12-month lease extension granted in April 2025, is designed to ensure operational continuity and a smooth ownership handover. Mining activities at Damang restarted in May 2025, and technical studies have been completed to support the mine’s future under state control.
“Mining activities were successfully restarted, and a detailed feasibility study completed in December 2025 sets Damang up for an extended life of mine,” Gold Fields said in a statement.
Collaboration with Government
Over the past year, Gold Fields has worked closely with government transition teams to prepare the mine for handover, maintaining a focus on:
- Sustaining jobs in the local community
- Supporting host community development
- Ensuring long-term viability of operations
The update comes amid Ghana’s push for greater value addition from mineral resources and proposed reforms to the mineral royalties regime, aimed at increasing state returns from extractive assets.
While the government has not yet issued a formal statement on the Damang transition, Gold Fields emphasized that final decisions on the mine’s future rest with state authorities.
Investments and Local Impact
Since 2000, Gold Fields has invested approximately US$5 billion in its Damang and Tarkwa operations, contributing around US$2.9 billion to the Ghanaian state through taxes, royalties, and dividends. The company employs over 7,000 people locally, 99% of whom are Ghanaians, and has invested more than US$100 million in community programs spanning health, education, and infrastructure.
CEO Mike Fraser said:
“Our priority is a stable and well-managed transition while maintaining strong relationships in Ghana’s mining sector. We remain committed to contributing to the country’s mining industry.”
A recent feasibility study projects that Damang could continue producing gold for another 9 years, with an estimated US$600 million capital injection and potential annual output of around 150,000 ounces, though Gold Fields noted that future operators may produce differently.
