Gold Fields Limited has secured a new one-year mining lease from the Government of Ghana, granting the company permission to restart operations at its Damang mine.

The agreement follows extensive negotiations and offers a temporary lifeline for the mine, which was shut down earlier this month.

The mining lease, which allows open-pit operations to resume, will be valid for 12 months and is pending parliamentary approval when the House returns on May 16, 2025.

Operations at the Damang mine were suspended by the government on April 18, following its refusal to extend Gold Fields’ previous licence. The decision sparked outrage among mine workers, who had planned protests against the closure.

In a statement, Gold Fields hailed the new arrangement as a “productive way forward” for the mine, which had faced uncertainty in recent months.

“The Government of Ghana will grant a new mining lease to Gold Fields for the Damang mine, for twelve months, during which time Gold Fields will continue to operate the mine,” the company announced.

During the lease period, the company will resume open-pit mining based on a previously submitted operational plan while continuing to process surface stockpiles.

Gold Fields assured stakeholders that the resumption of mining will not only safeguard current jobs but also create new employment opportunities.

“The Company will safely recommence mining activities at Damang… ensuring continued employment and an increase in jobs created with the restart of mining activities,” the statement read.

To support the mine’s full reactivation, the Ministry of Lands and Natural Resources is expected to assist Gold Fields in securing the necessary permits.

As part of the deal, Gold Fields has committed to completing a comprehensive bankable feasibility study by the end of 2025. This study aims to explore the possibility of extending the mine’s operational life.

The company also reaffirmed its ongoing investment in geological assessments.

“(Gold Fields) is committed to continuing with the infill exploration drilling programme to improve Mineral Resource confidence at the mine.”

Looking ahead, the agreement paves the way for a future transition of the Damang mine to Ghanaian ownership—a significant shift in the company’s local strategy.

“Gold Fields and the Government of Ghana will each appoint representatives to a joint asset transition team,” the company noted.

“They will appoint advisors and will work collaboratively to ensure the successful transition of the asset to ownership by the people of Ghana.”

The parties emphasized their dedication to “transparency, sound governance, and open engagement” throughout the transition process.

Gold Fields reassured that the developments at Damang will not impact its flagship Tarkwa mine.

“Gold Fields notes the Government of Ghana’s strong support for continued operations at Tarkwa mine,” the statement said.

The company added that preparations for Tarkwa’s lease renewal, expected in 2027, are underway.

President John Mahama welcomed the agreement, describing it as a pivotal moment for Ghana’s mining sector.

“This is an important day for Ghanaian mining as we strengthen our partnership with Gold Fields,” he said.

“Increased local participation and ownership in Ghana’s mining industry is a key part of Government’s commitment to creating wealth for Ghanaians.”

He also underlined Ghana’s openness to investment and sustainable development.

“Gold Fields has a long and positive history in Ghana, and we are pleased to be working with them to safely and sustainably operate the Damang mine and ultimately transition it to the people of Ghana. Ghana remains open for business and welcomes investment.”

Gold Fields Board Chairman Yunus Suleman echoed the President’s remarks.

“Gold Fields has been operating in Ghana for more than 30 years and has developed a strong and positive track record of economic and social contribution to the country,” he said.

“We remain committed to operating in Ghana, and to continue contributing to the country’s mining expertise, development and shared prosperity for many years to come.”

He expressed optimism about the renewed agreement and its broader implications.

“The agreement with the Government is welcomed and is an opportunity for Damang mine to continue creating value and making a sustainable economic contribution to the communities surrounding Damang, under future ownership of the people of Ghana.”