Gold Fields Ghana will hand over the Damang mine to the federal government in April 2026, following the expiration of the one-year lease extension.
The Group Chief Govt, Mike Fraser, disclosed this at this time, August 22, 2025, on a convention name with traders and Journalists on their half-year monetary efficiency.
Mr. Fraser stated that “That is a part of an settlement that we have reached with the Authorities of Ghana after a deal was reached to increase the lease by 12 months and clean transition to Ghanaian possession”.
He additionally revealed that Gold Fields, beneath the deal, “will proceed to handle the mine, however will, nevertheless work with a committee how the mining lifetime of Daming will be prolonged”.
“This association was to make sure correct and secure transition of the mine to a brand new proprietor,” the Chief Govt of Gold Fields added.
Requested whether or not Gold Fields was involved in buying the Damang mine, he famous that this isn’t on the desk, as a result of “we had a plan to maneuver the mine to a brand new proprietor, due to the present standing of its asset high quality and a major quantity of worth within the Damang mine.”
In keeping with him, Gold Fields is dedicated to working with the Ghana Authorities to make sure a profitable transition of the asset in 2026.
The Chief Govt of Goldfields, nevertheless, rejected assertions that it agreed to let go of Damang, in order that the federal government would lengthen the mining lease for Tarkwa when the present lease expires.
Tarkwa Operations
On the Tarkwa operations and anticipated lease, he revealed that the federal government has requested his outfit to come back to the desk, including, “We’re dedicated to that course of to make sure that it’s realised”.
“We’ve accomplished a whole lot of work to make sure that the life span of the mine is prolonged for a very long time, “Mr. Fraser added.
The Chief Govt of Gold Fields additionally expressed dedication to rising its funding within the Tarkwa mine, as a part of efforts to enhance returns for shareholders.
Gold Fields in Could 2025 , introduced that it has agreed to pause the cope with AngloGold Ashanti, referring to the Tarkwa/Iduapriem three way partnership, to permit deal with its respective operations on a standalone foundation.
Goldfields stated, “We at the moment are centered on optimising and lengthening the lifetime of Tarkwa on a stand-alone foundation.”
“We don’t know who will take over the Damang Mine, however that’s within the domian of the Ghana Authorities”, he added.
The CEO of Gold Fields additionally assured that “we now have operated in Ghana over the previous 30 years and we sit up for doing greater than 30 years, and we’re absolutely dedicated to that”.
Background
Parliament in July 2025 accredited one-year transitional mining lease settlement between the Authorities of Ghana and Abosso Goldfields Restricted for continued gold mining operations at Damang, situated within the Wassa West District of the Western Area.
The lease follows the expiration of the earlier settlement on April 18, 2025. The brand new lease is scheduled to run till April 2026. It’s explicitly non-renewable and prohibits any extension, switch, mortgage, or associated transactions past the acknowledged expiry date.
Authorities Relations
The Group Chief Govt of Gold Fields additionally revealed that his outfit’s relations with the federal government has improved significantly, following some preliminary challenges.
Gold Fields is subsequently wanting ahead to rising its operations in Ghana.
He additionally identified that Goldfields is conscious of some proposed new mining rules in Ghana with respect to possession.
“Nonetheless, for us, all our investments stay intact, he added.
He rejected arguments that it is solely Goldfields that’s benefiting from excessive gold costs. “If you happen to verify our financials, you’ll realise that our tax funds have gone and that’s clear that everybody is benefiting”.
Monetary Efficiency
Gold Fields, in response to its 2025 half-year report, delivered a stronger efficiency in comparison with the identical interval in 2024, with the momentum from the second half of final yr persevering with into an improved half-year efficiency.
Most significantly, its security enchancment actions have resulted in improved outcomes with no fatalities reported at any of our operations within the first half of 2025.
The group attributable manufacturing rose 24% to 1,136koz and stays on observe to satisfy steering for the yr. The mine is on observe to attain industrial manufacturing ranges throughout quarter three 2025 and regular state throughput in quarter 4 2025 as deliberate.
The improved operational efficiency, coupled with the upper gold value resulted in a robust monetary efficiency within the first half of 2025, with the group producing adjusted free money circulation of US$952 million in comparison with an outflow of US$58 million within the first half of 2024.
Income elevated by 64% from US$2.24 billion for the six months ending 30 June 2024 to US$3.478 billion for the six months ending 30 June 2025. This was as a result of 17% larger gold-equivalent ounces offered and the 40% larger gold value acquired.
Gold-equivalent ounces offered elevated by 17% from 0.961Moz to 1.126Moz.
Alternatively, revenue for the interval elevated by 163% from US$402 million for the six months ended 30 June 2024 to US$1.056 billion for the six months ended 30 June 2025.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially signify the views or coverage of Multimedia Group Restricted.
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