Gold Fields has finalised a development agreement with the Government of Ghana for its Tarkwa and Damang mines.

Under the agreement, the corporate tax rate will be reduced from the existing 35% to 32.5% with effective from 17 March 2016.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The agreement also highlights a change in the royalty rate from a flat 5% of revenue to a sliding scale royalty based on the gold price with effect from 1 January 2017.

According to the company, the agreement will be for a period of 11 years for Tarkwa, while it will be nine years for Damang.

"The agreement is expected to save 2,000 jobs at the Damang mine."

Each term is also renewable for another five years.

See Also:

Gold Fields said in a statement: "Ghana continues to be a key region for Gold Fields and we commend the Government of Ghana for creating a fair and competitive environment in the country."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The agreement is expected to save 2,000 jobs at the Damang mine, which could be lost if the mine was placed under care and maintenance.

Reuters reported Gold Fields spokesman Sven Lunsche saying that the company is yet to take a decision on whether to invest more into Damang or cease operations at the mine.

In 1993, the company signed a management contract with the government to operate the mine and later a feasibility study was completed in 1996 on an open-pit/heap leach operation.

Gold Fields acquired the 18.9% IAMGold interest in Tarkwa in 2011 and currently owns 90%, while the remaining 10% is held by the Ghanaian Government.

In 2001, Gold Fields signed an agreement to purchase Repadre’s 90% interest in Damang.

IAMGold and Repadre merged to give IAMGold an 18.9% interest in Damang and Gold Fields a 71.1% interest.