ACCRA, Mar 17 – Ghana is reviewing bids from local investors to take over and revive the Damang gold mine, a project that could require up to $1 billion in investment.
The mine was previously operated by Gold Fields, but the government took control of the asset in April after rejecting the company’s lease renewal application.
The decision marked a shift away from the longstanding practice of automatic lease extensions and reflects Ghana’s broader push to increase local participation in its mining sector.
According to Isaac Tandoh of the Minerals Commission, three bidders are currently under consideration.
These include Engineers & Planners, BCM International and consortium Vortex Resources.
All three parties have confirmed their bids, although details of their proposals have not been publicly disclosed.
A source familiar with the process indicated that Engineers & Planners may have an advantage, having operated at the Damang site for approximately 25 years.
The Damang lease is set to expire on April 18 and will not be renewed, according to the regulator.
Reviving the mine is expected to require between $600 million and $1 billion in investment, highlighting the scale of capital needed to restore production.
Ghana, Africa’s top gold producer, remains a key market for Gold Fields, with output from its Tarkwa and Damang operations contributing significantly to its recent earnings performance.
In a parallel policy move, the government has introduced a sliding-scale royalty regime aimed at increasing state revenues during periods of elevated commodity prices.
The outcome of the bidding process will be closely watched as Ghana balances the goals of attracting investment, boosting local ownership and sustaining production in its critical mining sector.
