File photo of Damang Mine
Documents sighted by GhanaWeb reveal that the Ministry of Lands and Natural Resources issued a notice of “no objection” in March 2024, allowing indigenous mining firm Engineers and Planners Co. Ltd. to enter negotiations for the acquisition of the Damang Gold Mine from Abosso Goldfields Limited.
The letter, dated March 12, 2024, and signed by Professor Patrick K. Agbesinyale on behalf of then Lands Minister Samuel Abu Jinapor, followed advice from the Minerals Commission under the Akufo-Addo administration.
It stated, “Your company has gained considerable experience in mining, and is currently engaged in contract mining for Abosso Goldfields Limited's Damang Gold Mine. Based on these representations and the Commission’s recommendation,” the letter read.
It continued, “The Hon. Minister for Lands and Natural Resources has no objection to Engineers and Planners Co. Ltd. entering into negotiations with Abosso Goldfields Limited for the purposes of acquiring the Damang Gold Mine.”
The notice, however, emphasised that the “no objection” does not constitute final approval.
“Any agreement concluded between you, on one hand, and Abosso Goldfields Limited, on the other hand, shall be subject to the express approval or otherwise of the Government of Ghana. For the avoidance of doubt, any such agreement shall not be valid, and no rights shall pass under such an agreement without the consent of the Government of Ghana,” the letter stated.
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The emergence of the letter comes after the Minority Caucus of Parliament called for full transparency and accountability in the management and transition of key mining assets, including the Damang Gold Mine, as well as the Black Volta and Sankofa projects.
In a statement issued by the Ranking Member of Parliament’s Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, the minority expressed concern over the impending transition of the Damang Mine from Gold Fields Ghana to the state, noting that with less than 30 days to the transition, Parliament has not been informed of the incoming operator.
It warned that the lack of clarity could affect jobs, government revenue, and investor confidence, particularly following the earlier lease non-renewal and subsequent one-year extension.
The Minority outlined a number of demands, including the immediate disclosure of the new operator of the Damang Mine, publication of the selection criteria and evaluation process, and transparency on all financing and fiscal arrangements.
Meanwhile, Ghana is evaluating three bids from local investors to take over Gold Fields’ Damang Gold Mine, which requires an estimated $600 million to $1 billion to revive, according to the Minerals Commission.
The government seized control of the mine in April 2023 after rejecting a lease-renewal bid from Johannesburg-based Gold Fields. The Minerals Commission said Gold Fields’ failure to declare verifiable reserves prompted the move, which is part of Ghana’s broader effort to boost local ownership in the mining sector.
Ghana weighs local bids for $1 billion revival of Gold Fields' Damang Mine
Acting CEO of the Minerals Commission, Isaac Tandoh, told Reuters, “A decision is expected as soon as possible,” adding that reviving the mine would require “$600 million to $1 billion.”
Mining contractors, Engineers & Planners (E&P) and BCM International, along with consortium Vortex Resources, are reported to have submitted bids to operate the mine. A source familiar with the process told Reuters that E&P, Damang’s current contractor, is a leading contender, having operated the mine for about 25 years.
Meanwhile, Gold Fields, which continues to operate the nearby Tarkwa Mine, received a 12-month lease to resume open-pit mining and establish reserves, but its Damang Mine lease will not be renewed, according to the Minerals Commission.
BAI
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