Ghana moves to localise mining assets as Gold Fields steps aside

The move follows the expiry of the company’s mining lease in April 2025 and a subsequent 12-month extension granted by the government to allow for a smooth transition. Gold Fields said it had applied for a renewal, but authorities opted for the mine to transition into Ghanaian hands.

“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,” Gold Fields CEO Mike Fraser said during a media briefing on the company’s 2025 results.

Under Ghana’s mining laws, mineral assets revert to the state when leases expire. A transition team appointed by the sector minister has been working alongside Gold Fields since July 2025 to coordinate the handover. The team is expected to assume interim leadership from April 19, 2026, pending the appointment of a new operator.

Fraser said the company has not received formal communication on who will take over long-term operations. “A new operator would need to be appointed and issued with a mining lease to continue operations, a process that could require parliamentary approval,” he noted.

Gold Fields completed a feasibility study before the handover, indicating that Damang could continue operating for at least nine more years with annual production of 100,000 to 150,000 ounces. Extending the mine’s life would require an estimated $500 million to $600 million in new investment.

The Damang Mine, located in the Western region of Ghana is one of the largest gold mines in the country and directly employs about 500 staff and supports up to 1,500 contractors, making operational continuity a key concern.