Gold Fields Ghana announces $400m Damang mine expansion

Gold Fields Ghana on Wednesday confirmed a $400 million capital investment to extend the operating life of its Damang mine in the Western Region by twelve years and increase annual gold production from 155,000 ounces to 210,000 ounces, in what the company described as its largest single infrastructure investment in Ghana in over two decades.nnThe expansion programme involves sinking two new decline shafts to access deeper ore reserves identified through a three-year exploration programme, upgrading the processing plant from 5.2 million to 7.5 million tonnes per annum capacity, and constructing a new tailings storage facility meeting current international environmental standards.nnGold Fields Ghana Managing Director Alfred Baku said the investment was underpinned by the government’s commitment to maintaining a stable and competitive mining fiscal regime. “Damang has been operating for nearly thirty years. This investment says we believe in Ghana’s future as a gold mining destination,” he said.nnMinerals Minister Samuel Jinapor welcomed the announcement and said it was consistent with the government’s strategy of encouraging deep-investment commitments from existing operators rather than simply opening new greenfield concessions. The expansion is expected to create 1,400 direct jobs and support approximately 4,000 indirect positions in supplier and service companies.nnLocal community leaders from Damang, Tarkwa and Huni Valley expressed cautious support for the expansion but called for enhanced community development fund contributions, improved local procurement targets and a binding commitment on post-mine land rehabilitation.nnGold is currently trading at approximately $2,450 per troy ounce. Ghana remains Africa’s largest gold producer and the world’s sixth largest.