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Ghana: E&P completes takeover of Damang Mine amid tender controversy

Ghana: E&P completes takeover of Damang Mine amid tender controversy

Engineers & Planners (E&P) has officially taken over operations of the Damang Mine, marking the culmination of a contentious and closely watched transition from the previous operator, Gold Fields.

The takeover, formalised on April 18, 2026, follows months of regulatory processes, political scrutiny, and industry debate over the awarding of the mine’s contract.

The chronology of the transition dates back to 2025, when the Government of Ghana signaled its intention not to renew Gold Fields’ lease for the Damang concession upon its expiration.

The decision was framed within a broader policy direction to increase local participation in the mining sector.

Subsequently, the Minerals Commission initiated processes to identify a new operator, opening the door for indigenous firms to bid for control of the asset in what has been described by experts and CSOs as a skewed tendering process to favour a company linked to the brother of the president.

Engineers & Planners, a Ghanaian-owned mining and construction firm, emerged as the preferred bidder.

However, the selection process quickly drew criticism from sections of the public and industry stakeholders, who questioned the transparency and competitiveness of the tendering procedure.

Concerns were raised over whether due process was fully adhered to, with some alleging that the process lacked adequate openness and may have sidelined other capable contenders.

Gold Fields, which had operated the Damang Mine for years, also expressed reservations about the transition, pointing to its track record of investment and production at the site.

The company indicated that it had expected a more consultative approach before the final decision was taken.

Despite these concerns, the Minerals Commission and the Lands and Natural Resource Ministry maintained that all procedures followed were consistent with national laws and policy objectives aimed at empowering local firms.

In the months that followed, negotiations and technical evaluations were carried out to ensure a smooth transition. Regulatory approvals were secured, and E&P undertook preparatory work, including assembling a management team, securing financing, and outlining operational strategies for the mine.

The official handover ceremony on April 18 showed the final step in the transition. At the event, representatives from Engineers & Planners were presented with operational control, signalling the start of a new chapter for the Damang Mine under Ghanaian management.

The ceremony was attended by government officials, industry players, and stakeholders, many of whom described the moment as opportunity for local participation in the extractive sector.

E&P has pledged to maintain production levels, protect jobs, and introduce efficiency-driven practices to enhance the mine’s output. The company also emphasised its commitment to community development and environmental stewardship.

While the takeover represents a significant milestone for indigenous enterprise in Ghana’s mining industry, the earlier concerns surrounding the tendering process continue to linger.

Source: TheGhanaReport | Read the Full Story…

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