Gold Fields Limited has announced plans to initiate a phased shutdown of its Damang Mine following the government's decision to reject the company's application to extend the mining lease, which expires on April 18, 2025.
In a circular sighted by Citi News, the company stated that without a valid mining lease, it would be unable to continue operations at Damang beyond the expiration date and would be required to vacate the lease area.
Gold Fields noted that it has submitted additional proposals to the Minister of Lands and Natural Resources in an effort to resolve the issue.
However, in the meantime, it has begun scaling down production to prepare for a safe and orderly shutdown of the mine. "This means that starting today, and over the weekend, we will initiate a phased reduction in production and take steps toward ensuring a safe and orderly shutdown of current mining activities at Damang, pending resolution of the matter or further clarity on the way forward.
