Authorities are currently reviewing three proposals from local investors to assume control of the asset, which is estimated to require up to $1 billion in fresh investment to restore full production.
The process follows the government’s decision to take over the mine formally operated by South Africa’s Gold Fields nearly a year after rejecting the firm’s lease renewal application.
According to Reuters, the shortlisted bidders include Engineers and Planners Company Limited, BCM International, and consortium Vortex Resources. Regulators are now assessing which of the applicants is best positioned to address the mine’s operational and financial challenges.
Ghana, which is pushing to expand local participation in its mining industry, declined to extend the lease of the Johannesburg-based operator in April—marking a departure from the long-standing practice of automatic renewals.
CEO Mike Fraser confirmed that while Gold Fields had sought an extension, it accepted the government’s preference for the asset to transition to local ownership.
Engineers and Planners, led by Ghanaian billionaire Ibrahim Mahama, has operated as a long-term contractor at Damang, giving it extensive operational knowledge of the mine’s systems and workforce.
The funding will boost equipment upgrades, hard-rock mining efficiency, and long-term operational capacity, signaling growing confidence in local companies to manage major mining assets.
Ghana introduces new policies to reshape gold mining and revenue streams
These include plans to replace the long-standing flat 5% royalty with a sliding scale of up to 12%, alongside stricter requirements for in-country procurement and participation by Ghanaian firms.
Washington, alongside China, the UK, Canada, and Australia, has mounted unusual coordinated diplomatic pressure on Ghana to reconsider or scale back the policy, warning that higher royalties could make the country one of Africa’s most expensive mining destinations and deter investment.
The U.S. position is closely aligned with concerns from global mining companies, which argue that the proposed rates could squeeze profit margins, delay new projects, and reduce long-term output.
Despite this, Ghana has signaled its intent to proceed, framing the reforms as part of a broader shift across Africa toward resource nationalism where governments seek to capture more value from rising commodity prices and reduce reliance on foreign firms.
Gold Fields’ feasibility study indicates that Damang could produce 100,000–150,000 ounces of gold annually for at least nine more years, though extending operations would require US$500–600 million in fresh capital.
Regulatory oversight by the Minerals Commission and other agencies ensures full compliance with Ghanaian mining laws.
Editor’s Note: Headline and story refined to clarify that the firm – Engineers and Planners Limited is in negotiations to assume operational control of the Damang gold mine
