Hot Source….CEO describes transition as ‘safe and orderly’
The agreement between Gold Fields and the Government of Ghana, regarding the future of the Damang mine, has significantly improved relations in recent months, according to Mike Fraser, Chief Executive Officer of Gold Fields.
Gold Fields Ghana, will hand over the Damang mine to the government in April 2026, following the expiration of a one-year lease extension.
The Group Chief Executive disclosed this on Friday, 22 August 2025, during a conference call with investors and journalists to discuss the company’s half-year financial performance, from his base in Johannesburg, South Africa.
President John Mahama has been very vocal about plans to develop and implement an indigenous framework for managing Ghana’s natural resources, emphasising that while expelling foreign firms is not the goal, lease renewals should be negotiated to ensure greater Ghanaian participation.
He specifically addressed the Damang mine situation, where lease non-renewal led to tensions before a transitional agreement was reached. The aim, he said, is to ensure that mining operations benefit local communities and resource wealth stays within Ghana.
Mr Fraser said: “This is part of an agreement we reached with the Government of Ghana after a deal was struck to extend the lease by 12 months and allow for a smooth transition to Ghanaian ownership.”
He revealed that, under the deal, Gold Fields would continue to manage the mine while working with a committee exploring ways to extend Damang’s life. “This arrangement is to ensure a proper and safe transition of the mine to a new owner,” he added.
Responding to questions during the call, Fraser admitted: “We were in a difficult position in March and were not finding each other at that point, but I think we have made exceptionally good progress over the last five months.”
Fraser rejected suggestions that the Ghanaian government had pressured Gold Fields to concede on Damang by linking it to the renewal of the Tarkwa lease.
He described Tarkwa as one of the group’s four long-life assets underpinning Gold Fields’ future.
From 2026, Tarkwa is expected to contribute around 20% of global production.
“In March, the minister was clear that the contribution Tarkwa makes to the Ghanaian economy and the community of Tarkwa is very material,” Fraser noted.
“We feel very comfortable where we have landed, and the government has been keen to ask us to come to the table early on the Tarkwa lease renewal. They have stressed that this is a different circumstance, given our long-term commitment to Tarkwa and Ghana.”
He emphasised that Gold Fields’ reputation in Ghana remained strong, with no basis for hostility towards the company. “The only point of difference was the pathway for Damang, which has now been resolved,” he said.
Gold Fields’ lease at Damang has been extended until April 2026, after which the mine will be handed over to the government. Fraser clarified: “There will be no trade sale or anything of that nature for Gold Fields’ account. The value of the mine is relatively modest. The only way to unlock the value of the resource is through further investment, and we don’t see material value from our point of view.”
On ownership regulations, Fraser noted: “There are conversations within Ghana about what new mining regulations should look like, but there are no specifics on changes to local ownership. At this stage, we expect our current level of participation to remain intact.”
He also addressed the stalled merger of Tarkwa with AngloGold Ashanti’s Iduapriem mine, paused despite a memorandum of understanding signed in 2023. “The strategic logic of this combination still makes sense, and I believe we should revisit the joint venture in the coming years,” Fraser said.
Fraser stressed that Gold Fields has no interest in acquiring Damang, explaining: “We had a plan to move the mine to a new owner, given the current asset quality. We are committed to working with the Ghanaian government to ensure a successful transition in 2026.”
He dismissed claims that Damang was being surrendered as a trade-off for Tarkwa’s lease renewal. Instead, Fraser said the company was committed to engaging constructively with the government on Tarkwa’s long-term future, adding: “We have done a lot of work to extend Tarkwa’s life span. We remain committed to investing further to improve returns for shareholders.”
In May 2025, Gold Fields and AngloGold Ashanti agreed to pause their joint venture deal over Tarkwa/Iduapriem to focus on their operations independently. “We are now focused on optimising and extending Tarkwa’s life on a stand-alone basis,” Gold Fields stated.
On Damang’s successor, Fraser said: “We don’t know who will take over the mine. That decision rests with the Government of Ghana.”
He also reaffirmed Gold Fields’ commitment to Ghana: “We have operated here for more than 30 years and look forward to at least another 30. We are surely committed to that.”
In July 2025, Ghana’s Parliament approved a one-year transitional lease agreement between the government and Abosso Goldfields Limited for continued operations at Damang. The lease, which expires in April 2026, is explicitly non-renewable and prohibits any extension, transfer or mortgage.
Fraser confirmed relations with government had improved markedly after earlier tensions. He stressed that Gold Fields’ investments remained intact, despite discussions about future regulations.
He also rejected claims that only Gold Fields was benefitting from high gold prices. “If you check our financials, you will see that our tax payments have increased, which is clear evidence that everyone is benefitting,” he said.
Gold Fields’ 2025 half-year results showed stronger performance compared to the same period in 2024. Production rose 24% to 1,136koz, with the company on track to meet annual guidance. Commercial production is expected in Q3 2025, with steady-state throughput in Q4.
The group reported revenue growth of 64%, rising from US$2.24 billion in the first half of 2024 to US$3.48 billion in the same period of 2025, driven by higher sales volumes and stronger gold prices. Profit surged 163% to US$1.06 billion, while adjusted free cash flow swung to US$952 million from an outflow of US$58 million last year.
Crucially, Fraser highlighted that no fatalities were recorded at any Gold Fields operations in the first half of 2025, reflecting improved safety outcomes.
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