Gold Fields says Damang Mine could run 9 more years: With US$600m investment

By Kizito CUDJOE

Gold Fields say the Damang Mine could continue producing for another 9 years with an estimated capital injection of roughly US$600million, even as the miner prepares to hand over the asset on April 18 following a declined lease extension.
The feasibility studies, submitted to the Minerals Commission and the Ministry of Lands and Natural Resources at the end of 2025, projected annual production of around 150,000 ounces (oz).

Gold Fields stressed that these figures reflect the company’s own operational assumptions and cautioned that any new operator could take a different view.
The announcement comes as Gold Fields reported strong global performance in 2025 – with production rising 18 percent to 2.438 million ounces, partly driven by ramp-ups in Chile and boosted shareholder returns through higher dividends and buybacks.

All-in costs were within guidance, albeit at the higher end. Total all-in costs rose 3 percent year on year (YoY) while all-in sustaining costs increased 1 percent. “These increases reflected general cost inflation, higher royalties and stronger producer-country currencies… partly offset by higher production,” the company said.

Gold Fields described the feasibility work as a roadmap for continued operations, signalling both the potential value of Damang and pragmatic caution needed in light of evolving government regulations.

During a media roundtable on the company’s 2025 full-year results, Chief Executive Officer (CEO) Mike Fraser clarified that the feasibility study was an undertaking made with government under the monthly extension arrangement.

“Based on our outlook for gold prices, we would expect the asset to be profitable over that nine-year period,” he said.
“But I want to stress that these figures are based on our assumptions and how we would have operated the asset. Anyone else coming in could apply a very different lens, so these numbers should not be taken as definitive.”

He added that the overall spirit when the lease process was completed was that both government and Gold Fields were interested in seeing the operation continue.
“The feasibility work was intended to support a pathway for extending the operation’s life, because that was the key objective we were all aligned on,” Mr. Fraser said.
As part of the Damang handover agreement, the company also committed to constructive discussions regarding the Tarkwa Mine lease renewal. At the end of November, Gold Fields formally submitted its lease renewal application and paid all appropriate fees.

“This followed an update of the life-of-mine plan and an increase in reserves, which we also announced in November. That set the groundwork for engagement around the lease-renewal terms,” Mr. Fraser said.

He noted that the country’s broader policy environment is part of the discussions. “What’s happening in Ghana is part of a wider narrative about whether government and the people are getting a fair share of the country’s resource wealth, particularly as Ghana is now the largest gold producer in Africa. We’ve been having very constructive conversations in that context,” he said.

“One of the key issues is a proposed increase in royalties currently before parliament. We’ve been discussing this both bilaterally and as an industry, noting that there is a real risk such royalties could become uncompetitive over time as they are at the higher end globally.

“At the same time, there are proposed updates to the mining bill, mining regulations and the Mining Act, including issues around tenure and potential ownership or participation in the sector,” he added.

Mr. Fraser acknowledged that while bilateral discussions have been constructive, the overall policy framework for lease renewals remains in flux… which may be contributing to delays.
“That said, we’ve been assured that Ghana remains open to business and wants to continue partnering with companies like Gold Fields and other large international producers, recognising the value we bring to the economy and competitiveness of the country,” he said.

In that context, engagement is ongoing. Gold Fields is among the first companies to go through a formal lease-renewal process under the evolving framework and may be something of a test case. But the company is having frequent and constructive discussions and is confident that progress will be made.

At the same time, given the broader national debate and differing views, the process is not without risk and the company is being pragmatic in its approach. The lease itself expires in 2027 but both sides are committed to advancing discussions earlier, recognising the importance of reaching clarity as soon as possible.

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