Mining

    Gold Fields shares drop as Ghana lease rejection forces Damang mine closure

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    U.S.-listed shares of South African gold miner Gold Fields (NYSE:GFI) fell by 3.5%, settling at $23.70, after the company announced it would wind down operations at its Damang mine in Ghana.

    The move follows the Ghanaian government's decision to reject Gold Fields' application to extend the mine’s lease.

    The Damang mine, which produced 135,000 ounces of gold in 2024, accounted for about 6% of the group's total output of 2.15 million ounces.

    However, Gold Fields had already ceased active mining operations at Damang in 2023, opting only to process stockpiles.

    Despite the halt in mining, the company had committed to exiting the operation in an orderly manner as part of its end-of-life plan.

    Meanwhile, Gold Fields has seen remarkable growth this year, with its shares up 79.55% so far.

    The company’s focus now shifts to optimizing its other operations, following a clear exit strategy from Damang.

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