Goldfields Damang Mine could close down - Manager

Mr. Michiel Van der Merwe, General Manager of the Tarkwa Gold Mine of Goldfields Ghana Limited, said on Monday that the company was considering folding up operations at its Damang Mine because of high cost of production.

He made this disclosure when Dr. Joe Oteng-Adjei, Minister of Environment, Science, Technology and Innovation visited the Tarkwa Gold Mine as part of his tour of mines in the Western Region.

Mr. Merwe said the cost of producing gold at Damang Mine was becoming prohibitive and unprofitable, and that management of the company would take a firm decision on the mine by April next year.

He said the other alternative was for the company to put the Damang mine under “Care maintenance”. Mr. Merwe said the company was also considering laying off some workers at the Tarkwa Gold Mine because of the drop in gold price on the world market.

He said Tarkwa Gold Mine had produced 630,000 ounces of gold this year, out of a targeted 741,000 ounces, and that next year’s production target was 525,000 ounces.

Dr. Oteng-Adjei advised mining companies to engage people who had been trained in environmental protection to assist them to manage environmental issues arising from their operations.

He said mining companies should honour their corporate social responsibilities to communities in which they operate. They should also encourage science education by providing ICT centres and Science Resource Centres for schools.