25 Oct Gold Fields plans to invest $1.4 billion in Ghana
Gold Fields (JSE,NYSE:GFI) has announced it will invest US$1.4 billion at its Damang Gold mine in Ghana over the next eight years.
The investment will extend the life of mine (LOM) by eight years from 2017 to 2024 and will create and preserve 1,850 direct jobs in Ghana.
The South African mining giant said the ‘Reinvestment Plan’ will enhance its presence in what it calls a ‘key operating region’.
Over the LOM Damang will see a total of 165 million tonnes (mt) mined, with 32mt processed at a grade of 1.65 grammes per tonne, resulting in total gold production of 1.56 million ounces.
“Given the importance of the region to the group and taking into account the benefits of the Development Agreement, Gold Fields has taken the decision to continue operations at Damang through the Reinvestment Plan,” Gold Fields said in a statement. “The group will also retain the optionality to expand the operation should the gold price strengthen sustainably to above US$1,400 per ounce.”