Damang Mine Faces Shutdown as Government Rejects Lease Extension

The mining lease, critical to continuing operations at the site, will lapse on April 18, 2025, forcing the company to initiate an immediate phased shutdown.  

In the memo dated April 12, 2025, authored by Senior Vice President and managing director of Gold Fields Ghana Elliot Twum, the firm revealed that Ghana’s Ministry of Lands and Natural Resources rejected its application for a lease extension. Without the license, all mining activities at Damang must halt by April 18, with the company required to vacate the lease area. Operations at the nearby Tarkwa mine remain unaffected, with employees urged to “remain focused on maintaining safe and productive operations.”  

The company has begun winding down production in phases to ensure a “safe and orderly shutdown” while engaging Ghanaian authorities to resolve the impasse. “We have tabled further proposals with the Minister of Lands and Natural Resources,” the memo stated, though it cautioned that preparations for compliance must proceed pending clarity from the government.

The sudden announcement has raised concerns among Damang’s employees, local communities, and business partners. In response, the company formed a Management Committee to evaluate potential solutions, mitigate impacts on workers, and prioritize safety. “Our immediate priorities are to ensure the security of our people and understand the implications of the government’s decision,” the memo read.  

The firm pledged to engage stakeholders “constructively” starting next week and maintain regular communication as developments unfold. Affected employees and partners were encouraged to direct questions to line managers or leadership.  

The memo emphasized that the shutdown preparations do not signal permanent closure, leaving room for negotiation. However, within less than a week of the lease expiring, uncertainty looms over Damang’s future. The company reiterated its commitment to “creating enduring value beyond mining” while navigating the crisis.  

The Ministry of Lands and Natural Resources has yet to publicly comment on the rejection or proposals. The situation underscores the challenges facing mining firms in balancing regulatory compliance with operational continuity in resource-dependent regions.  

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