The application by Gold Fields Limited to renew the Damang Mining Lease for another thirty years has been declined, our investigations reveal.
Earlier, a release by the company to employees on 12 April 2025 stated that the application for the extension of the mining lease of Abosso Goldfields Limited, a subsidiary of Gold Fields Limited has been rejected.
Background:
The rejection to renew the mining lease by the Minerals Commission comes at the time when the 30-year mining lease which was granted by the Government of Ghana in April 1995 is due to expire on 18th April 2025.
The group which is among the top producers of gold in the world owns the Tarkwa and Damand Mines with the Government of Ghana holding a ten (10%) percent stake in both mines.
The 2024 Annual Report of the company shows that 32% of the group production comes from the two mines in Ghana.
This means that nearly a third of the entire gold produced by Gold Fields worldwide comes from Ghana.
Details:
Our checks reveal that the mining lease was granted in April 1995 and the mining operation commenced in August 1997.
According to the 2024 annual report of Gold Fields, no mineral reserves were declared at the Damang mine which meant there are no defined gold reserves to be mined.
The company stopped mining in 2023 and started processing stockpiles.
In fact, it is clearly stated in the Mineral Resources and Reserves Supplement to the Integrated Annual Report of 2023 that no exploration was proposed for the Damang mine in 2024.
Issues:
Without a mineral reserves and with no funds set aside for exploration in 2024, the company has not been able to demonstrate that it has materially complied with the requirements of the Minerals and Mining Act, 2006 (Act 703) to warrant any renewal, our sources at the Minerals Commission confirm.
The company, our investigations reveal in 2025 intends to continue the processing of stockpiles in line with the life of mine which is indicted as a year in the 2024 Annual Report.
Clearly, this is a mine that has not met the requirements for its lease to be extended.
Our source said while Ghana welcomes and supports foreign investment, it is essential to recognize that mining lease cannot be granted in perpetuity.
The decision to reject the extension of the mining lease, our source stated underscores the need for the state to indigenize the mining sector and ensure that the wealth generated from resources benefit the people of Ghana.
Story By Michael Ofosu-Afriyie,
Kumasi.
