GHANA has awarded the Damang gold mine to local mining services company Engineers & Planners Ltd (E&P), said Reuters citing mines minister Emmanuel Armah-Kofi Buah on Tuesday.
The Minerals Commission recommended E&P as the preferred bidder following a competitive tender process that began after Ghana declined to renew Gold Fields’ operating lease last year.
Instead of an automatic extension, Ghana’s authorities invited local bids for what could become a $1bn revival of the asset, said Reuters.
E&P demonstrated access to $505m in financing, meeting the government’s minimum funding threshold of $500m, and scored well on technical capability, equipment, safety and local content, said Reuters citing the minister’s statement.
Johannesburg-based Gold Fields, which operated Damang for more than two decades, had flagged the mine’s limited remaining life and lack of economic reserves when it initially indicated it might sell the asset.
The company said last month it was working to ensure an orderly handover to an incoming operator.
Ghana’s move reflects a broader effort to deepen local ownership across its mining sector.
Authorities said the tender was designed to keep Damang operational, protect employment and increase the participation of Ghanaian-owned businesses in an industry historically dominated by foreign majors.
The selection of E&P marks one of the more significant tests of whether locally backed capital can sustain and expand a large-scale gold operation in West Africa.