The Minerals Commission of Ghana has justified its decision not to renew the mining lease of Gold Fields Ghana Limited’s Damang Mine, stating that the company did not meet the necessary criteria required for an extension. This development comes as the current 30-year lease is set to expire on April 18, 2025.
The Commission has not yet publicly disclosed the specific reasons for the rejection, but JoyNews sources indicate that the refusal is based on compliance with the Minerals and Mining Act, 2006 (Act 703), particularly Section 44, which outlines conditions under which a lease may be renewed. Non-compliance with the provisions of this Act can result in the denial of a renewal application.
Gold Fields’ own reporting appears to reflect the end of mining operations at Damang. According to its 2023 Annual Report, active mining ceased in 2023 following the depletion of the Huni pits. The company planned to process the remaining stockpiles by the end of 2025. However, its 2024 report noted that continuing such operations was no longer economically viable under current gold pricing assumptions.
The Damang Reinvestment Project, which sustained the mine in recent years, is also scheduled for depletion by the end of 2025. All exploration activities have been halted, and no new projects are expected due to the low potential for further significant discoveries in the area.
In an official statement released on April 12, 2025, Gold Fields acknowledged the government’s decision and stated its intention to begin winding down operations. The company indicated that it had submitted further proposals to the Ministry of Lands and Natural Resources in an attempt to resolve the situation but also confirmed that it would begin complying with the lease expiry timeline.
As part of this process, the company has started a phased reduction in operations and is preparing for a safe and orderly shutdown of activities at the Damang site. The development marks the end of a significant chapter in the country’s mining sector, as the Damang mine has played a notable role in Ghana’s gold production over the past three decades.
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