Damang mine sale restricted to firms 100% owned by Ghanaian citizens

Ghana has restricted the sale of the Damang Gold Mine to wholly Ghanaian-owned companies, according to a report by Bloomberg, as the government moves to increase local participation in the country’s mining sector.

The decision comes ahead of the planned transfer of the mine from Gold Fields to the state on April 18, following the expiration of the company’s lease. Authorities had earlier declined to renew the lease, granting instead a 12-month extension on condition that the asset be transitioned into Ghanaian ownership.

Under the terms of the tender, only firms that are 100 per cent owned by Ghanaian citizens were eligible to submit bids, with the deadline for applications closing last Tuesday, Bloomberg reported. The process is being overseen by the Ministry of Lands and Natural Resources, led by Emmanuel Armah-Kofi Buah.

The move forms part of a broader policy direction aimed at increasing local control in an industry long dominated by multinational mining firms such as AngloGold Ashanti, Newmont and Zijin Mining Group.

Damang, which has been in operation for nearly three decades, produced about 88,000 ounces of gold last year, significantly below its peak output. Despite the decline, the mine remains a strategic asset within Ghana’s position as Africa’s leading gold producer.

Prospective buyers are required to demonstrate strong technical and financial capacity, including experience in open-pit mining, the ability to operate the mine for at least ten years, and access to more than $500 million in development funding, according to Bloomberg.

The development reflects a wider trend across Africa, where governments in countries such as Mali and Zimbabwe are pushing for greater control over revenues generated from natural resources.

In Ghana, the last major transaction in the gold sector involved the sale of the Akyem mine, where Zijin Mining Group agreed to acquire the asset from Newmont for $1 billion in October 2024.

Meanwhile, Gold Fields is in talks with the government over the renewal of its lease for the larger Tarkwa mine, as it seeks to maintain its operations in the country.

The outcome of the Damang tender is expected to test Ghana’s efforts to reshape ownership structures in the mining industry, with a stronger focus on indigenous participation and long-term value retention.