JOHANNESBURG - South Africa's mining lease in Ghana is hanging in the balance.
There has been a growing debate in Ghana on whether the government should renew Gold Fields Ghana Limited's lease in Tarkwa.
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The lease renews automatically; however, there are now questions about whether that should still be the case.
The gold miner's quarter production in March jumped by 15 percent.
This was boosted by stronger output from its Salares Norte mine in Chile.
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Meanwhile, the company said conflict in the Middle East has pushed up the prices of diesel, freight, gas, cyanide, and explosives, all of which are squeezing margins across its operations.
Gold Fields previously warned the spike in energy prices could add up to $50 per ounce to production costs if oil stays elevated.
At the same time, weather disruptions in Australia and weaker output in Ghana weighed on performance at several mines.
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Despite the pressure, the miner said higher gold prices are helping cushion the blow.