An application by Gold Fields Limited to renew the Damang Mining Lease held by its subsidiary, Abosso Goldfields Limited, for another 30 years has been rejected, a top government source has revealed.
This was corroborated in a statement released by Gold Fields Ghana Limited that the application to the Minerals Commission to extend the mining lease for the Damang Mine had been declined.
The decision not to renew the mining lease comes at a time when the existing 30-year lease granted on April 18, 1995, expires on April 18, 2025, marking a significant milestone in the government’s mission to reset the nation’s economic landscape.
Gold Fields Limited is the seventh biggest producer of gold in the world, and has two operational mines in Ghana, namely the Tarkwa Mine, which is operated by Gold Fields Ghana, and the Damang Mine, which is run by Abosso Goldfields Limited.
Renowned for its rich gold deposits, the Damang Mine is poised to play a pivotal role in strengthening Ghana’s economy.
The Government of Ghana held a 10 per cent share in both mines.
According to the 2024 Annual Report of the Gold Fields Group, which has mines in Canada, Australia, Peru, Chile and South Africa, the two mines in Ghana accounted for 32 per cent of the group’s gold production in 2024, meaning about a third of the entire gold produced by Gold Fields worldwide comes from Ghana.
Earlier reports indicated that before mining stopped at Damang, the Ghana mines of the company contributed about 40 per cent to the group.
Credit:GRAPHICONLINE