Ghana has selected local mining services company Engineers & Planners Ltd (E&P) to take over the Damang gold mine, the Ministry of Mines announced on Tuesday.
The move follows the government’s rejection of Johannesburg-based Gold Fields’ lease renewal bid, marking a break from years of automatic extensions. The state took control of the mine last year and began assessing local bids for a potential $1 billion revival of the asset.
In a statement, Mines Minister Emmanuel Armah-Kofi Buah said the Minerals Commission recommended E&P as the successful bidder. The company demonstrated access to $505 million in financing, meeting the government’s requirement that bidders show funding capacity of at least $500 million.
E&P also scored highly on technical experience, equipment, safety measures, and local content, according to the statement.
Gold Fields, which has operated Damang for more than two decades, said it may sell the mine due to its limited remaining life and lack of economic reserves. The company added that it was working to ensure a smooth transition to the new operator.
Authorities emphasised that the tender aims to keep the mine operational, protect jobs, and increase local participation in Ghana’s mining sector.
The selection of Engineers & Planners Ltd reflects Ghana’s broader strategy to boost local ownership and technical expertise in the mining industry while maintaining continuity of production at key gold assets.
