Hot Source….As Parliament reviews mining law
Gold Fields’ Damang mine in Ghana, has witnessed heightened activity as the South African gold giant prepares to hand over the deposits to the Government of Ghana in April 2026, following the expiry of a one-year lease extension as well as Parliament’s review of portions of the Minerals and Mining Act (Act 703).
The development reflects markedly improved relations in recent months, according to Gold Fields’ Chief Executive Officer, Mike Fraser.
The Minerals and Mining Act, 2006 (Act 703) is Ghana’s main law that governs the exploration, acquisition, licensing, and development of mineral resources. It consolidates and updates previous mining laws and has been amended several times to strengthen regulation, enhance state participation, and align with international best practices.
Ahead of the transition, the Parliamentary Select Committee on Lands and Natural Resources visited the company and commended it for its consistency in delivering strong financial contributions to the state and impactful social investments. The Ghana Chamber of Mines facilitated the visit to the Tarkwa mine.
Chairman of the Committee, Alhaji Collins Dauda, praised Gold Fields for its record of dividend payments to the government.
“Since my tenure as Minister for Lands and Natural Resources, Gold Fields has been the only mining company that consistently paid dividends to the Government of Ghana. They have a good track record and must be commended for it,” he said.
He further urged the Ghana Chamber of Mines to lead advocacy for reforms in the disbursement of mineral royalties. He criticised the bureaucracy involved, stressing that delays deny traditional authorities and host communities timely access to much-needed development funds.
The Chamber described the engagement as timely, coming as Parliament reviews portions of the Minerals and Mining Act (Act 703). Its Chief Executive Officer, Ing. Dr Kenneth Ashigbey, reiterated that transparent management of mineral revenues remains essential to ensuring that the benefits of mining reach communities and contribute to national development.
The visit formed part of Parliament’s oversight responsibilities to better understand the operations of mining companies, their challenges, and their contributions. It also gave lawmakers the opportunity to assess community development initiatives spearheaded by Gold Fields.
As one of Ghana’s largest gold producers, Gold Fields’ record in fiscal responsibility and social investment continues to position it as a key partner in the country’s development agenda.
Separately, the Embassy of Peru in Ghana recently organised a webinar aimed at boosting investment in agribusiness, technology transfer and sustainable mining. The event followed a courtesy call by Peru’s Ambassador to Ghana, Her Excellency Rosa Liliana Gómez Cárdenas de Weston, on Gold Fields’ Accra office, where she expressed appreciation for the company’s participation in the Peru–Ghana Trade and Investment Webinar.
At the Peru–Ghana Trade and Investment Webinar, business leaders, policymakers, and government officials from both countries exchanged ideas and pledged to strengthen bilateral partnerships. Gold Fields’ Vice-President for External Affairs in Ghana, Michael Edem Akafia, joined a panel on sustainable mining, highlighting collaboration and shared learning.
Ambassador Gómez Cárdenas de Weston noted that Peru and Ghana are united by rich natural resources, dynamic economies and a commitment to sustainable development.
Gold Fields is a globally diversified producer with nine mines in Australia, Canada, Chile, Ghana, South Africa and Peru, and one project in Canada.
As part of the transitional agreement for Damang, Mr Fraser explained during a 22 August 2025 conference call with investors and journalists that the mine’s lease had been extended by 12 months to allow for a smooth handover to Ghanaian ownership.
“This arrangement is to ensure a proper and safe transition of the mine to a new owner,” he said, adding that Gold Fields would continue to manage operations while working with a committee exploring options to extend Damang’s life.
Mr Fraser acknowledged earlier tensions with the Ghanaian government but noted that relations had improved significantly over the past five months. He dismissed claims that Damang’s handover had been linked to the renewal of the Tarkwa lease, describing Tarkwa as one of the group’s “four long-life assets underpinning Gold Fields’ future”. From 2026, Tarkwa is expected to contribute about 20% of the company’s global production.
“The only point of difference was the pathway for Damang, which has now been resolved,” he said.
He clarified that Damang would not be sold: “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.”
He also addressed Ghana’s ongoing review of mining ownership regulations, saying: “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.”
On the stalled merger of Tarkwa with AngloGold Ashanti’s Iduapriem mine, Fraser said: “The strategic logic of this combination still makes sense, and I believe we should revisit the joint venture in the coming years.”
He reaffirmed Gold Fields’ long-term 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, Parliament approved a one-year transitional lease agreement with Abosso Goldfields Limited for Damang, which expires in April 2026. The agreement explicitly prohibits further extension, transfer or mortgage.
Gold Fields’ half-year results for 2025 reflected robust performance. Production rose 24% to 1,136koz, with the company on track to meet annual guidance. Revenue increased 64% year-on-year to US$3.48 billion, while profit surged 163% to US$1.06 billion. Adjusted free cash flow swung to US$952 million from an outflow of US$58 million in 2024.
Importantly, Fraser highlighted that no fatalities were recorded across Gold Fields’ operations in the first half of 2025, underscoring improved safety outcomes.
Since its enactment, Act 703 has been reviewed and amended, notably in 2010 (Act 794) and 2015 (Act 900), to tighten controls on small-scale mining, improve transparency, and introduce new penalties for illegal mining (“galamsey”).
Currently, Parliament is again reviewing portions of Act 703, especially around royalty distribution, local ownership, and community benefit-sharing, a matter raised during oversight visits such as the recent one to Gold Fields.
Key provisions of Act 703 include Ownership of minerals, which says that all minerals in their natural state are the property of the Republic of Ghana, vested in the President in trust for the people.
The Act sets out the framework for granting reconnaissance, prospecting and mining licences, as well as their renewal, transfer or termination.
On royalties and fiscal obligations, the Act stated that mining companies pay royalties (generally 5% of gross revenue), corporate taxes, and other statutory fees.
On state participation, the Government of Ghana is entitled to a free carried interest (10%) in mining operations. As part of local content and employment, the law requires mining companies to prioritise Ghanaian goods, services, and labour, and to provide training for local staff.
On environmental protection, holders of mineral rights must comply with environmental regulations, rehabilitation obligations, and obtain Environmental Protection Agency (EPA) permits.
Provisions support the allocation of mineral royalties to traditional authorities and local government for the development of mining communities. At the same time, the Act provides mechanisms for resolving disputes through negotiation, arbitration, or the courts.
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