Ghana has assumed operational control of Gold Fields' Damang mine after it rejected an application from the South African company to renew its lease, the government said on Wednesday, breaking a tradition of automatically renewing licenses and calling it a critical step in the country's "economic reset."

Johannesburg-based Gold Fields said on Monday that it had unsuccessfully applied to extend the Damang lease, which is due to expire on April 18, and was winding down operations as a result.

It was only processing stockpiles at Damang after ceasing mining operations in 2023, although it had committed to exit the operation in an orderly way as part of its end-of-life plan.

The government said its decision to take control was based on a series of regulatory and operational shortcomings, including Gold Fields' failure to declare verifiable mineral reserves in its lease renewal application, and the absence of a required technical program detailing past and future mining activities.

A Gold Fields Ghana spokesperson said they were unable to comment after closing hours.

A source familiar with the matter said Gold Fields planned to meet authorities to try and reach a different solution.

"There is a meeting planned for Friday but the way this is being escalated, there is less hope," the source said.

"The Damang Mine's return to state oversight marks a critical step in Ghana's economic reset, ensuring its gold reserves directly benefit citizens," the government said in a statement issued by the Ministry of Lands and Natural Resources, which oversees mines.

It said the decision aligned with policy moves to stop the "neo-colonial" automatic renewal of mining licenses in gold-producing Ghana, but reassessing in order to maximise national benefit.

"We are on the lookout for value propositions on the utilisation of our mineral resources that align with the same," the statement said, adding that it would ensure uninterrupted operations and protect jobs throughout the transition.

Damang is the smaller of Gold Fields' two mines in Ghana after Tarkwa, the biggest open pit gold mine in the country. Damang produced 135 000 oz of gold in 2024, about 6% of the group's total output of 2.15-million ounces.

The company has been weighing selling its smaller operations - including Damang and the Cerro Corona mine in Peru, which has less than five years left on its lifespan - as it focuses on its newly commissioned Salares Norte mine in Chile and the Windfall project in Canada.