• Ghana selects E&P to take over Damang gold mine

• Decision follows Gold Fields’ exit and tender process

• Move reflects push for local control in mining sector

Ghana has selected Engineers and Planners Ltd (E&P) to take over the Damang gold mine. The decision, announced Tuesday, concludes a tender process launched last month and hands control of one of the country's oldest gold complexes to a company led by Ibrahim Mahama, brother of President John Mahama.

After Gold Fields' exit

The Damang mine has been in operation for nearly 30 years. Last year, it reached the end of its operational life, as known reserves were depleted and the mining lease of its South African operator, Gold Fields, expired. An agreement was reached with the state to extend that lease by one additional year to ensure a smooth transition. As that period draws to a close this month, authorities launched a tender process open to local companies to take over the mine.

Three other firms competed alongside E&P: Vortex Resources, Heath Goldfields and Maripoma Mining. After evaluating the bids, the committee said E&P received the highest score, noting that it met key requirements, including the ability to raise at least $500 million in financing.

"The tender documentation indicates that the Company possesses experience and knowledge relevant to the operations; infrastructure, and geology of the Damang Mine and submitted proposals for the development of same, including measures intended to extend the life of mine beyond ten (10) years [...] In summary, the Company demonstrated the highest capability to operate the Damang mine, substantiated by their submission of the most viable tender," the committee said.

Part of a broader regional trend

By securing approval to take over Damang, E&P is part of a broader push to increase local participation in Ghana's mining sector. The company had already announced in 2025 the acquisition of the Black Volta gold project, previously held by an Australian firm.

A similar trend is seen at the Bogoso-Prestea mine, which the state reassigned to Heath Goldfields, and more broadly across West Africa, with comparable developments recently observed in Côte d'Ivoire.

While this reflects growing ambitions among local players to establish themselves in mining, their ability to meet the associated operational and financial challenges remains to be proven. In Damang's case, E&P holds one advantage: it has operated at the site for several years as a mining contractor for Gold Fields.

Despite this advantage, the central challenge will be executing its strategy on an asset with declining production. In its annual results, Gold Fields reported output of 97,500 ounces at Damang, roughly one-third of its historical peak and down 28% year-on-year.

Pending further details on E&P's plans, the company can draw on a feasibility study conducted by Gold Fields at the request of Ghanaian authorities. The details remain undisclosed, though the study confirms that extending the mine's lifespan is possible.

Aurel Sèdjro Houenou