Gold Fields to end operations at Ghana’s Damang mine after lease extension denied

Gold Fields (JSE, NYSE: GFI) will cease operations at its Damang mine in Ghana after the government rejected the company’s application to extend the site’s lease, which is set to expire this Friday.

The South African gold producer already stopped mining at Damang in 2023 and has been processing stockpiles only. It confirmed on Monday that authorities instructed it to vacate the lease area by the April 18 expiry date.

“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 said, adding it was “preparing to safely and responsibly cease operations and ensure the safety and security of our people and high-risk operations.”

Damang is the smaller of Gold Fields’ two mines in Ghana after Tarkwa — the country’s largest open-pit gold operation. Damang produced 135,000 oz. of gold in 2024, accounting for about 6% of the group’s total output of 2.15 million oz.

The company has been reviewing the future of its smaller operations including Damang and the Cerro Corona mine in Peru, which has less than five years of mine life remaining. Following its $1.6 billion acquisition of Osisko Mining last fall, Gold Fields has shifted its focus to the recently commissioned Salares Norte mine in Chile and the Windfall project in Canada.

Shares of Gold Fields dropped 4% following the announcement, giving the company a market capitalization of $22.22 billion.