South Africa’s Gold Fields will invest $1.4 billion to extend the life of its Damang mine in Ghana, it said on Monday, as it reported a quarterly output update.
The investment will extend the life of the mine by eight years to 2024, in which the firm expects to produce 1.56 million ounces of gold there.
Gold Fields signed an agreement with Ghana’s government in March linking royalties payments to the bullion price and lowering the corporate tax rate to 32.5 percent from 35 percent.
The firm on Monday reported its total gold production in the three months to September 30 was 537,000 ounces, 4 percent lower than in the corresponding period a year earlier.
Gold Fields maintained its guidance for attributable equivalent gold production for 2016 at between 2.10 million and 2.15 million ounces.