• Gold Fields will transfer the Damang mine to the Ghanaian state on April 18 after a one-year transition period.

• A feasibility study confirms the mine’s life could be extended, despite a 28% production drop in 2025.

• Local companies are positioning to acquire the asset, with potential investment needs reaching $1 billion.

Gold Fields confirmed that it will transfer the Damang gold mine to the Ghanaian state on April 18. However, uncertainty remains over the identity of potential buyers for this late-life asset, nearly 30 years after its commissioning in 1997.

End of a transition period

Gold Fields operates Damang as its second gold mine in Ghana after Tarkwa. The company has managed Damang through a transition phase since April 2025. Gold Fields and the Ghanaian government agreed to extend the mining lease by one year after its expiration to prepare for a gradual takeover by local authorities.

This transition period aimed to support technical work assessing exploitable reserves and estimating the mine’s remaining lifespan. One year later, the process approaches completion, and Gold Fields has initiated final steps to complete the transfer.

In an update published on Wednesday, March 25, the company stated that it submitted a detailed feasibility study on Damang to Accra in December 2025. The study confirms a potential extension of the mine’s lifespan but does not specify the exact duration or associated reserves under the revised mining plan.

While further details remain pending, this confirmation suggests that operations could continue at a site previously considered depleted. The perceived depletion contributed to a 28% year-on-year decline in production last year.

“Gold Fields has the privilege of operating in Ghana for more than 30 years and we are proud of the partnerships we have built with the Ghanaian government and local communities over time […]. The company remains committed to ensuring operational continuity and responsible management during this process,” said CEO Mike Fraser.

Ghanaian companies lead race for takeover

The Ghanaian government has not yet formally announced its decision regarding Damang’s future, despite the approaching deadline. However, Reuters reported that local mining firms have already begun positioning themselves to acquire the asset.

These firms include Engineers & Planners (E&P), led by Ibrahim Mahama, brother of President John Mahama, and a long-time contractor at the site. BCM International and the Vortex Resources consortium have also expressed interest.

Nevertheless, the structure and terms of the bids submitted to Accra remain unclear. Isaac Tandoh, head of Ghana’s mining regulator, told Reuters that restarting the mine could require up to $1 billion in investment. “A decision is expected as soon as possible,” he added.

The Ghanaian government must now determine which option it will pursue in the coming weeks. In Burkina Faso, authorities transferred the Wahgnion and Boungou gold mines to the state-owned Société de Participation Minière du Burkina (SOPAMIB) after acquiring them from Endeavour Mining in 2024.

As countries across the region seek to increase mining revenues amid rising gold prices, stakeholders will closely monitor decisions regarding Damang.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange J.A de Berry Quenum