Gold Fields Limited, one of the world’s leading gold producers, is preparing to shut down its Damang mine in Ghana by Friday, April 18, 2025, after the government rejected the company’s application to extend its mining lease.
The announcement, made on Monday, triggered a 6.3 per cent drop in Gold Fields’ share price on the Johannesburg Stock Exchange (JSE), closing at 444.81 rands.
This decline came despite a 4.11 per cent increase in the global gold price, which stood at $3,208.71 per ounce. A year ago, Gold Fields’ share was trading at 342.47 rands, indicating significant volatility tied to recent developments.
In a statement, Gold Fields disclosed that its subsidiary, Abosso Goldfields, had submitted a lease extension application in December 2023 for the Damang Main Mining Lease.
However, the Minerals Commission of Ghana rejected the request, instructing the company to cease all operations and vacate the site by April 18.
“The company continues to seek ongoing engagement with the government to secure the best outcome for all stakeholders,” Gold Fields said.
According to the company, the application had met all statutory requirements, and multiple engagements had taken place with relevant authorities since the rejection notice was received.
The Damang mine, which had been operational since 2002, was part of Gold Fields’ key West African portfolio, contributing significantly to its overall gold production. However, active mining at the site stopped in 2023 following the depletion of the Huni pits, with the mine continuing to process existing stockpiles.
While the closure of Damang marks a major shift, Gold Fields has clarified that its Tarkwa operations remain unaffected and continue to operate as normal.
The company has committed to safely and responsibly winding down operations at Damang, with attention to the safety of personnel and the management of high-risk infrastructure.
“These developments at Damang do not affect operations at Tarkwa, which remain ongoing,” the company reiterated.
Gold Fields has assured stakeholders that it will provide further updates should there be any material changes to the situation.
