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Gold Fields suspends operations at Ghana's Damang Mine after the government rejects a lease renewal

Gold Fields, a South African company, announced on Monday that it will cease operations at its Damang Mine in Ghana following the rejection of a lease extension application by the Ghanaian government.

The Johannesburg-based mining company has considered selling smaller operations, including the Cerro Corona mine in Peru and Damang in Chile. Both mines have less than five years remaining on their lifespan. Instead, they are focusing on the newly-commissioned Salares Norte project in Canada and the recently-commissioned Salares Norte in Chile.

Gold Fields only processed stockpiles in Damang after ceasing its mining operations in 2023, although the company committed to exiting the operation in a timely manner as part of the end-of life plan.

In a press release, the company stated that it had failed to apply to extend the Damang Lease which expires on April 18.

Gold Fields announced that the government had instructed them to stop operations and leave the lease area on the 18th of April, the expiration date for the lease.

It added that the company was "preparing to safely and responsible cease operations, and ensure safety and security for our people and high risk operations."

The smaller of Gold Fields’ two mines, Damang, is located in Ghana. Tarkwa is the largest open-pit gold mine in Ghana. Damang produced 135,000 gold ounces in 2024. This is about 6% the total production of 2.15million ounces for Gold Fields. (Reporting and editing by Susan Fenton; Nelson Banya)

(source: Reuters)