Goldfields is confident of securing a favourable lease extension for its Tarkwa mine as discussions with the Government of Ghana continue ahead of the April 2027 expiration date.
Group Chief Executive Mark Fraser told investors during a media call on the company’s 2025 financials that initial talks are encouraging.
“We are hopeful a deal will be closed before the expiration date,” he said.
Fraser assured that any future agreement would not immediately affect operations, noting that “our lease agreement does include stability provisions, which means that it won’t apply to us at least until the end of our lease.”
Fraser emphasised that Goldfields has a clear plan for Tarkwa’s future that aims to create more value for investors.
He also expressed concern that, as one of the first mining companies to face a lease review under the government’s renewed focus on the sector, “we could end up being experimented with” as authorities attempt to secure greater returns from mining.
The Tarkwa mine operates under leases covering 20,800 hectares and produced 0.612 million ounces of gold in FY2009 at a cash cost of US$521 per ounce.
The operation employs nearly 4,000 staff, including contractors, and has been described as a major contributor to Goldfields’ overall production.
Damang Mine Exit
Goldfields also confirmed it will formally relinquish ownership and operational control of the Damang mine on April 18, 2026, following the government’s decision to transition the asset to Ghanaian ownership.
This ends a 12-month lease extension granted after the mine’s original lease expired in April 2025.
Since July 2025, a transition team appointed by the sector minister has worked alongside Goldfields management to coordinate a “safe and seamless” handover.
Fraser noted the company has not yet received formal notice on who will assume long-term operations.
The interim team is expected to take control from April 19, 2026, pending appointment of a new operator and the granting of a mining lease, which may require parliamentary approval.
2025 Performance Highlights
Goldfields’ attributable production rose 18% year-on-year to 2.44 million ounces, hitting the upper end of guidance (2.25–2.45 million ounces).
The growth was driven by strong contributions from multiple assets, particularly the ramp-up of the Salares Norte mine in Chile.
All-in costs and all-in sustaining costs remained within guidance, slightly higher than 2024 due to increased sustaining capital, royalties, and stronger local currencies.
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Source: www.myjoyonline.com