The dormant Black Volta and Sankofa gold projects in the Upper West Region are poised for revival after indigenous mining contractor, Engineers & Planners (E&P), completed the acquisition of shares of Azumah Resources Ghana Ltd and Upwest Resources Ghana Ltd, owners of the two projects.
The transaction, finalised at the Registrar of Companies and the Minerals Commission, involves the direct transfer of all issued shares of the Ghanaian beneficial owner to E&P, which experts say signals a dramatic reshaping of the country’s mining landscape.
For nearly two decades, Black Volta and Sankofa Gold’s concessions have promised much but delivered little.
Capital constraints, shifting investor priorities and drawn-out legal disputes stalled the projects, frustrating communities and depriving the country of revenues.
Both concessions, granted under mining leases in 2014, contain sizeable resources but have been plagued by under-investment. The acquisition, therefore, marks a significant moment for the country’s mining sector.
Strategy
Now, E&P, led by a dynamic team, says it is ready to deploy the funding and technical expertise required to move swiftly into mine development.
With gold prices averaging $3,500 an ounce on the futures and spot markets, the opportunity to fast-track production could not be more compelling for a government grappling with fiscal consolidation under an International Monetary Fund (IMF) programme.
E&P has outlined a three-pronged strategy. First, it will work with the Ghana Revenue Authority (GRA) to audit and verify all historical loans attached to the projects.
“We will honour all genuine obligations, but they must be properly accounted for and taxed,” an E&P Executive said, pointing out opaque financing structures common in the country’s extractive sector.
Secondly, the company intends to repay verified debts, ensuring that creditors are treated fairly while maximising returns for the state.
Thirdly, E&P will deploy secure funding to launch mine construction, an ambitious pledge in a sector where project financing often proves the Achilles’ heel.
“This is a proud moment for E&P and for Ghana,” Executive Chairman of E&P, Ibrahim Mahama, said.
“Our commitment is to ensure that these projects, which have been dormant for too long, finally deliver real value to our country and its people,” he added.
Not corporate manoeuvre
The takeover is not merely a corporate manoeuvre as it represents a symbolic reassertion of Ghanaian ownership in a sector long dominated by foreign multinationals.
For years, these concessions were effectively in limbo, controlled by offshore entities unable or unwilling to mobilise the capital needed.
That narrative now shifts, as a home-grown company with deep roots in mining and civil engineering assumes responsibility.
Background
Founded in 1997, E&P has carved a reputation across West Africa as a contractor of choice for heavy mining and civil works.
Its portfolio include large-scale projects with global majors. However, the Black Volta and Sankofa Gold project acquisitions mark its most ambitious move into direct resource ownership.
Profound implications
The company’s success in turning exploration ground into producing mines will be closely watched, not only in Accra, but also in boardrooms from Toronto to Perth.
The implications are profound. If E&P can deliver, it could strengthen the case for greater localisation of mining assets, challenging a status quo where foreign ownership dominates, and Ghana’s participation is limited largely to royalties and carried interests.
Conversely, failure could reinforce scepticism about the capacity of indigenous firms to mobilise the vast sums and technical expertise required for world-class mining operations.
For residents of Wa and surrounding districts, the announcement has stirred up cautious optimism.
Years of anticipation and broken promises have bred scepticism, but the prospect of jobs, infrastructure, and community investment remains tantalising.
The government, under pressure to demonstrate that mining can drive broad-based development rather than enclave wealth, will be watching closely.
Civil society
Civil society groups have already called for transparent community engagement, environmental safeguards and clear benefit-sharing arrangements.
“We have seen too many projects where the local people remain poor while billions are extracted from beneath their feet,” one of the activists told the media, stressing that “E&P must prove it will be different.”
For the government, delivering new investment in the mining sector strengthens its economic recovery and job creation efforts.
It also provides potential new revenue streams to support budget targets agreed with the IMF.