Leading gold mining company Gold Fields Limited says it expects to invest about $500 million into its Ghana operations in the coming years.
The re-investment, which will go into the company’s Damang mine, is expected to increase the life of the mine from the current 3 years by some 10 more years.
In response to a question by Citi Business News at a media engagement in Accra, the Acting Executive Vice President and Head of Gold Fields in West Africa, Joshua Mortoti said Gold Fields’ contribution to the government of Ghana’s kitty will surpass last years’ contribution of $320 million.
“In terms of production, we are expecting collectively for West Africa, about 800,000 ounces between Tarkwa, Damang and our joint venture in Asanko and we expect that our returns to the government will not be any less than $320 million this year. We are working on reinvestment in Damang. Damang has a short mine life of 3 years. What that means is that we have to start reinvesting this year and that’s going to be very significant.
“What we are working on is potentially to extend Damang’s life by 10 years. So that’s going to be circa $500 million, which is going to go into Damang. But we first of all have to prove that we can make money in Damang to justify the investment request,” he added.
The media engagement saw the leadership of Gold Fields outline the progress it has made in multiple areas as well as the goals of the company in areas including Energy Security, Water Security, Safety and Health, as well as gender diversity in the medium to long-term.
