Gold Fields has confirmed it will officially hand over the Damang Mine to the Government of Ghana on April 18, 2026, bringing an end to its ownership and operational control of the asset.
The decision follows government’s preference for the mine to revert to state ownership after the expiration of its lease in April 2025. Although the company applied for a renewal, authorities signaled that they wanted the asset transitioned to Ghanaian control — a position Gold Fields says it accepted.
Speaking at a media roundtable during the presentation of the company’s 2025 full-year results, Chief Executive Officer Mike Fraser explained that a 12-month lease extension was granted to allow for what he described as a “safe and seamless” transition.
“Our lease expired in April 2025. We applied for an extension, but the government indicated a preference for the asset to transition to Ghanaian ownership, which we accepted and thought made sense,” Fraser said.
Since July 2025, a transition team appointed by the sector minister has been working alongside Gold Fields’ management at site to coordinate the handover process. However, Fraser noted that the company has not yet received formal communication regarding who will take over long-term operations after its exit.
From April 19, 2026, the transition team is expected to assume interim leadership and operatorship of the mine until government appoints a substantive operator. Any new operator would be required to secure a mining lease — a process that may involve parliamentary approval under Ghana’s mining laws.
Under the country’s legal framework, the Damang Mine reverts to the state upon lease expiry, leaving the government to determine its future ownership and operating structure.
Before the lease extension was granted, Gold Fields was required to complete and submit a feasibility study on the mine’s future viability. The study, delivered to the Minerals Commission and copied to the sector minister at the end of 2025, indicates that Damang could sustain at least nine more years of operations.
Projected annual production is estimated at between 100,000 and 150,000 ounces of gold. However, maintaining operations at that level would require capital investment of between US$500 million and US$600 million. Fraser cautioned that these projections are based on prevailing gold prices and that any incoming operator could adopt a different technical or commercial strategy.
The company emphasised that ensuring continuity has been central to the transition arrangement. Damang directly employs about 500 staff, while an additional 1,000 to 1,500 contractors are engaged in mining support services and energy supply. In total, between 1,500 and 2,000 livelihoods are tied to the mine’s operations.
“Failure would occur if we don’t see a continuation of the asset,” Fraser stressed, underscoring the importance of avoiding abrupt disruptions that could affect workers, contractors and host communities.
Gold Fields’ exit from Damang represents a significant shift in its Ghana portfolio, particularly as discussions continue with authorities over the renewal of the Tarkwa mining lease. For investors and industry watchers, attention will now focus on how swiftly government appoints a new operator and secures the necessary approvals to maintain uninterrupted production beyond April 2026 a critical test of policy coordination and operational continuity within Ghana’s mining sector.
