Ghana has taken full control of the Damang gold mine from South Africa’s Gold Fields. The government rejected the company’s lease renewal application. This marks a major shift in Ghana’s mining policy and economic direction.
The lease for the Damang mine is set to expire on April 18. Gold Fields confirmed that it could not secure a renewal. The company said it was winding down operations and only processing stockpiles after stopping mining in 2023.
The Ministry of Lands and Natural Resources said the decision was part of an “economic reset.” The government wants to ensure that gold reserves directly benefit the people.
“The Damang Mine’s return to state oversight marks a critical step in Ghana’s economic reset, ensuring its gold reserves directly benefit citizens,” the government said.
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End of Automatic License Renewals
The government pointed to regulatory issues in Gold Fields’ lease application. It said there was no proof of remaining gold reserves. The company also failed to submit a technical program outlining past and future activities.
“We are on the lookout for value propositions on the utilisation of our mineral resources that align with the same,” the ministry said.
It added that the transition would not affect operations or jobs. Ghana plans to stop what it called the “neo-colonial” practice of automatic license renewals.
Gold Fields said it could not comment after business hours. However, a source close to the matter said the company was trying to resolve the issue.
“There is a meeting planned for Friday but the way this is being escalated, there is less hope,” the source said.
Damang is the smaller of the company’s two mines in Ghana. It produced 135,000 ounces of gold in 2024. This accounted for around 6% of Gold Fields’ total output.
The company has been reviewing its smaller operations, including Damang and Peru’s Cerro Corona. Both are nearing the end of their lifespans. Gold Fields is shifting focus to new projects in Chile and Canada.
Ghana says it will continue mining at Damang without interruption. The state will now oversee the mine to maximize national benefit.