Gold Fields Limited has announced it will cease operations at its Damang mine in Ghana following the government's rejection of its application to extend the mining lease.

The mining giant disclosed in its 2024 Integrated Annual Report that it had applied for an extension of the Damang Main Mining Lease in December 2024.

However, the company recently received formal notice from the Minerals Commission of Ghana that the application has been denied.

In response, Gold Fields said it has engaged extensively with relevant government authorities to assert that its lease extension application met all statutory requirements.

Despite these efforts, the government has directed the company to halt operations and vacate the Damang lease area by April 18, 2025, when the current lease expires.

“Gold Fields is therefore preparing to safely and responsibly cease operations and ensure the safety and security of our people and high-risk operations,” the company said in a statement released Monday.

While the decision marks a significant development for the Damang site, the company confirmed that operations at its Tarkwa mine are unaffected and will continue as normal.

Gold Fields emphasized its commitment to ongoing dialogue with the government in an effort to achieve the best possible outcome for all stakeholders.

The company has pledged to keep shareholders and the market informed of any material developments regarding the Damang mine in the coming weeks.