The impending closure of Gold Fields' Damang gold mine in Ghana, following the government's decision not to renew the mining lease, is set to result in significant job losses.
Approximately 1,600 employees, excluding contractors, will be affected, with about 72% of them being locals from the surrounding communities. This translates to around 1,152 local workers who will lose their jobs.
The company had sought a 30-year extension to the lease through its subsidiary Abosso Goldfields but was notified of the rejection by the Minerals Commission of Ghana. Despite discussions with authorities, the lease, set to expire on April 18, 2025, was not extended.
The Government has instructed Gold Fields to cease operations and vacate the lease area by the 18th April on expiry of the lease," the company stated.
Gold Fields is preparing to safely and responsibly cease operations, ensuring the safety and security of its people and high-risk operations. The company continues to seek ongoing engagement with the government to secure the best outcome for all stakeholders. Operations at the Tarkwa mine will continue as normal, under the leadership of Elliot Twum, Senior Vice President and Managing Director of Gold Fields Ghana.
The closure of the Damang mine is part of a larger shift in Ghana's mining sector, with the government directing all foreign entities involved in its gold trading sector to exit the market by April 20, 2025. The Ghana Gold Board will now have the authority to purchase, sell, assay, and export artisanal gold. Gold Fields is shifting its focus to larger projects such as the Salares Norte mine in Chile and the Windfall project in Canada.
The Damang site, operated by Abosso Goldfields, a company 71.1% owned by Gold Fields Ghana, will cease operations by April 18, 2025, as instructed by the government. "The Government has instructed Gold Fields to cease operations and vacate the lease area by the 18th April on expiry of the lease," the company stated.
The closure will impact the local workforce, as Gold Fields had already stopped mining activities in 2023 and was focusing on processing stockpiles as part of its end-of-life plan for Damang.
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