Mining giant, Gold Fields Ghana Limited (GFGL), says it may not continue its operations at its Damang mine beyond April 18, 2025 following rejection of the company’s application for extension of the Damang mining lease.
The lease for the Damang mine expires on April 18, 2025 and the mother company, Gold Fields, applied to government for extension, but the latter rejected the request.
No reason has been offered by government for the rejection.
In a press statement announcing the rejection, Managing Director of GFGL, Elliot Twum, said the company had tabled a further proposal for the Minister for Lands and Natural Resources to consider.
In the interim, we must begin preparation to comply with the expiry of our mining lease,” the company said.
According to Elliot Twum, “starting today and over the weekend the company must initiate a phased reduction in production and take steps toward ensuring a safe and orderly shutdown of current mining activities at Damang, pending resolution of the matter or further clarity on the way forward.
“We encourage all our people there to remain focused on maintaining safe and productive operations. We understand this news may come as a shock and will cause concern, particularly to our employees, business partners and communities at Damang.”
In view of this development, the company has established a Management Committee to urgently assess the situation, identify potential paths toward resolution and evaluate the possible impacts on their people.
“Our immediate priorities are to ensure the safety and security of our people, understand the implications of government’s decision including any plans that they may have for the future of Damang mine and explore how we can best mitigate any negative effects on our people.”
The statement assured that GFGL was fully committed to engaging constructively with all relevant stakeholders regarding the issue at stake.
