Gold Fields Limited has announced plans to begin a phased shutdown of its Damang Mine following the government’s decision to reject the company’s application to extend the Damang mining lease which expires on April 18, 2025.
In a circular sighted by GhanaWeb Business, the company confirmed that without a valid mining lease, it will be unable to continue operations at Damang beyond the expiration date and must vacate the lease area accordingly.
Gold Fields has submitted additional proposals to the Minister of Lands and Natural Resources in a bid to resolve the matter.
However, the company said that in the interim, it will begin reducing production activities to ensure a safe shut of operations.
“This means that starting today, and over the weekend, we will 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. It is important to emphasise that this development does not affect operations at Tarkwa. We encourage all our people there to remain focused on maintaining safe and productive operations,” it stated.
Gold Fields has further established a management committee to urgently assess the situation, explore possible resolutions and evaluate the impact on its workforce following concerns raised by its employees, business partners, and host communities.
“Our immediate priorities are to ensure the safety and security of our people, understand the implications of the government’s decision, including any future plans for the Damang mine, and explore how we can best mitigate any negative effects,” the statement added.
Gold Fields began operations at the Damang mine in August 1997 and has since played a significant role in Ghana’s gold mining sector.
The company also operates the Tarkwa Mine, with the government of Ghana holding a 10% stake in both operations.
Source: www.ghanaweb.com
