Gold Fields confirms April 2026 exit from Damang mine

Gold Fields Ghana will officially hand over the Damang mine to the Government of Ghana in April 2026, following the expiration of the one-year lease extension granted earlier this year.

The Group Chief Executive Officer of Gold Fields, Mike Fraser, made this disclosure on Friday, 22 August 2025, during a conference call with investors and journalists on the company’s half-year financial performance.

Mr Fraser explained: “This is part of an agreement reached with the Government of Ghana after a deal to extend the lease by 12 months to allow for a smooth transition to Ghanaian ownership.”

He noted that Gold Fields, under the arrangement, will continue to manage operations at Damang but will collaborate with a government-appointed committee exploring options to extend the mine’s life.

“This arrangement ensures a proper and safe transfer of the mine to a new owner,” Mr Fraser said.

Responding to questions about whether Gold Fields itself would consider acquiring Damang, Mr Fraser stated this was not under consideration.

“We had a plan to move the mine to a new owner because of the current status of its asset quality and the significant value still in Damang,” he stressed.

Mr Fraser stressed that Gold Fields is committed to collaborating with the government to ensure a seamless handover in 2026.

He also rejected suggestions that giving up Damang was tied to securing a lease extension for Tarkwa, describing such claims as inaccurate.

Tarkwa Operations

On Tarkwa, Mr Fraser revealed that discussions with government were ongoing regarding the future of its mining lease. “We are committed to this process to ensure it is realised. We have invested significantly to extend Tarkwa’s life for the long term,” he noted.

He also confirmed Gold Fields’ commitment to increasing investment in Tarkwa, emphasising its potential to deliver strong returns for shareholders.

Earlier in May 2025, Gold Fields announced it had paused its joint venture talks with AngloGold Ashanti on the Tarkwa/Iduapriem project, choosing instead to focus on optimising Tarkwa as a stand-alone operation.

On Damang’s future, Mr Fraser stated: “We don’t know who will take over the mine. That decision rests with the Government of Ghana.”

Background

In July 2025, Parliament approved a one-year transitional lease agreement between the Government of Ghana and Abosso Goldfields Limited for continued operations at Damang in the Wassa West District of the Western Region.

The lease, which runs until April 2026, is explicitly non-renewable and prohibits extensions, transfers, or mortgages beyond the expiry date.

Government Relations

Mr Fraser further disclosed that relations between Gold Fields and the government have improved significantly. “We look forward to strengthening our operations in Ghana. For us, all investments remain intact, despite anticipated new mining regulations,” he remarked.

Mr Fraser dismissed claims that only Gold Fields benefits from high gold prices.

“If you look at our financials, you’ll see our tax payments have increased, which shows everyone is benefitting,” he added.

Financial Performance

Gold Fields reported robust results in its 2025 half-year performance, building on momentum from late 2024. Importantly, safety indicators improved, with no fatalities recorded across operations in the first half of 2025.

Attributable production increased by 24 per cent to 1,136koz, keeping the group on track to meet annual guidance. Commercial production is expected in quarter three, with steady throughput anticipated in quarter four 2025.

Operational gains, combined with higher gold prices, drove record earnings. Adjusted free cash flow rose to USD952 million, compared to an outflow of USD58 million in the first half of 2024.

Revenue jumped 64 per cent, from USD2.24 billion in the first half of 2024 to USD3.478 billion in 2025, supported by a 17 per cent increase in gold-equivalent ounces sold and a 40 per cent rise in average realised gold price.

Gold-equivalent sales climbed from 0.961Moz to 1.126Moz, while profit surged 163 per cent year-on-year, rising from USD402 million to USD1.056 billion in the period under review.