Gold Fields Ghana has announced plans to relinquish control of its Damang mine to the Government of Ghana by April 2026, even as the mining giant cele
Gold Fields Ghana has announced plans to relinquish control of its Damang mine to the Government of Ghana by April 2026, even as the mining giant celebrates a remarkable 163% surge in profits for the first half of 2025.
The decision, according to Group Chief Executive Officer Mike Fraser, follows a one-year transitional lease extension approved by Parliament in July 2025 to allow for a smooth handover of the mine.
Mike Fraser made the disclosure on August 22, 2025, during a conference call with investors and journalists to discuss the company’s half-year financial performance.
Transition Plan For Damang
The Damang mine, situated in the Wassa West District of Ghana’s Western Region, has been operated by Abosso Goldfields Limited, a subsidiary of Gold Fields, for decades.
Its previous lease expired in April 2025, prompting the government to grant a strictly non-renewable one-year extension that will end in April 2026.
Under the terms, the company is barred from extending, transferring, or mortgaging the lease.
Fraser explained that Gold Fields will continue managing operations until the deadline but will work with a joint committee to explore ways of extending the mine’s operational life under new ownership.
“This arrangement ensures proper and safe transition of the mine to a new owner,” he said, stressing that Gold Fields itself has no plans to acquire the mine due to the nature of its asset quality.
Speculation had arisen that the Damang handover was tied to securing government support for Gold Fields’ Tarkwa lease renewal.
Mike Fraser firmly rejected this, clarifying that the company’s exit was a planned strategic move rather than a concession.
Tarkwa Mine Remains Central
While Damang approaches the end of its mining lease, Gold Fields has set its sights on its flagship Tarkwa operations.
Mike Fraser disclosed that government had invited the company to begin talks on the lease for Tarkwa, one of Ghana’s largest and most productive gold mines.
“We are committed to that process,” Fraser said, noting that Gold Fields has already invested heavily to extend the mine’s life span and improve shareholder returns.
The company earlier this year suspended talks on a potential Tarkwa/Iduapriem joint venture with AngloGold Ashanti to concentrate on developing Tarkwa as a standalone asset.
Record Profits Amid Rising Gold Prices
The announcement of the Damang transition came against the backdrop of Gold Fields’ strongest financial performance in recent years.
The group recorded a 163% increase in profit, rising from US$402 million in the first half of 2024 to over US$1.05 billion in the first half of 2025.
Revenue also jumped by 64% to US$3.48 billion, driven by higher production and surging global gold prices.
Production rose 24% to 1,136koz, with gold-equivalent ounces sold up 17%. The company’s adjusted free cash flow stood at US$952 million, a sharp turnaround from a US$58 million outflow in the previous year.
Notably, the company reported no fatalities in its mining operations during the period, crediting enhanced safety protocols for the improved outcomes.
Improved Relations with Government
Fraser emphasized that Gold Fields’ relations with the Ghanaian government have significantly improved after earlier tensions over regulatory and operational issues.
He acknowledged that new mining regulations on ownership are under discussion but assured that the company’s investments in Ghana remain secure.
Rejecting claims that Gold Fields is the sole beneficiary of high gold prices, Fraser highlighted the company’s tax contributions as evidence that Ghana also reaps financial benefits from the sector’s boom.
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