By: Ecofin agency

South African gold miner Gold Fields Ltd. has launched arbitration proceedings against mining contractor Engineers & Planners (E&P) in Ghana, the company said in its quarterly report published Thursday, May 7, further clouding negotiations over the renewal of its Tarkwa mining lease, now its only remaining gold asset in the West African country.

E&P Seeks More Than $700 Million

Until April, Gold Fields operated two producing mines in Ghana, Damang and Tarkwa, both of which used E&P as a mining subcontractor. E&P is led by businessman Ibrahim Mahama, brother of President John Mahama. After Damang’s mining lease expired and the mine reverted to state control, Ghanaian authorities awarded its operation to E&P through a tender involving several local firms.

The dispute between the two companies predates those developments. E&P claims Gold Fields underpaid it for mining services at both operations and is seeking $474.9 million related to Tarkwa and $264.7 million related to Damang. While the parties had previously explored an out-of-court settlement, the matter has now escalated to arbitration.

Gold Fields did not disclose details of the arbitration process or identify the body overseeing the proceedings. Bloomberg, citing an emailed statement from the company, reported that the arbitration will take place in Ghana. Gold Fields said it intends to resolve the dispute in an orderly manner while maintaining operational stability at the Tarkwa site.

Lease Renewal Talks Continue Amid Mining Reforms

Gold Fields has been negotiating with the Ghanaian government since November 2025 over the renewal of Tarkwa’s mining lease. Five of the six permits that make up the operation are due to expire in April 2027, and no major breakthrough in the talks has yet been announced.

The negotiations are unfolding as Ghana prepares broad reforms to the fiscal and regulatory framework governing its mining sector.

One of the key measures under consideration would replace the current flat 5% gold royalty with a variable rate that could rise to as much as 12%. As in similar reforms introduced in Burkina Faso and Mali, the objective is to increase the state’s share of revenue from rising gold prices.

The government has also announced plans to eliminate so-called stability agreements, which offer tax incentives designed to attract mining investment. Several mining companies operating in Ghana, including Gold Fields, currently benefit from such arrangements.

The proposed changes have raised concerns across the mining industry, prompting repeated reactions from the Ghana Chamber of Mines, which represents companies active in the sector. U.S.-based Newmont, operator of the Ahafo gold mine, has warned that the reforms could lead to higher operating costs.

Gold Fields has not detailed the potential impact of the reforms on its own operations. The company said it hopes to reach a mutually beneficial agreement with the Ghanaian government that preserves Tarkwa’s “long-term viability.”

Tarkwa produced 474,500 ounces of gold in 2025, making it the largest contributor to Gold Fields’ global production portfolio and one of Ghana’s biggest gold mines. The operation’s remaining mine life is estimated at 17 years.

How Gold Fields manages the dispute with E&P while securing favorable terms for Tarkwa’s lease renewal remains uncertain. Though separate issues, the arbitration and the regulatory overhaul together create significant uncertainty around the group’s future in Ghana, at a time when the company is expanding outside Africa through acquisitions including Osisko Mining and Gold Road Resources.

Outside Tarkwa, Gold Fields has only one other African mine, South Deep in South Africa.