In a significant policy reversal, the Ghanaian government has approved a transitional agreement allowing Gold Fields Ghana Limited to continue operations at its Damang Mine for another year.
The decision comes weeks after authorities initially ordered the South African miner to vacate the site by April 19, citing regulatory violations.
The compromise agreement, brokered after intensive negotiations, establishes a joint management framework between the state and Gold Fields’ local subsidiary, Abosso Goldfields Limited. Under the terms disclosed by the Presidency, the company must now:
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Conduct comprehensive feasibility studies to determine remaining gold reserves
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Resume open-pit mining operations under stricter compliance requirements
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Process existing ore stockpiles under government supervision
“This interim arrangement preserves 1,800 direct jobs while allowing proper evaluation of the mine’s viability,” stated a government communique obtained by The High Street Journal. The lease extension requires parliamentary ratification when legislators reconvene in May 2025.
Industry analysts view the settlement as a tactical retreat by both parties. Gold Fields avoids immediate operational disruption to its West African portfolio, while the Akufo-Addo administration gains time to implement its minerals sector localization agenda. The agreement explicitly references plans to transition Damang to Ghanaian ownership, mirroring similar resource nationalism moves across Africa.
The Damang resolution may set precedent for upcoming negotiations over Gold Fields’ larger Tarkwa concession, which accounts for over 60% of the company’s Ghanaian output. With that lease expiring in 2027, both sides have pledged to establish clearer operational guidelines and local participation requirements.
Mining contributes 8% of Ghana’s GDP and 40% of export earnings, making such agreements economically consequential. The government’s initial hardline stance and subsequent compromise reflect the delicate balance between enforcing regulatory compliance and maintaining investor confidence in Africa’s leading gold producer.
