Engineers & Planners wins Damang Mining lease

Engineers and Planners (E&P) Company Limited, an indigenous mining services provider, has been selected to take over the operations of Damang Mine in the Western Region, marking a significant development for local ownership of large-scale mines.

The Tender Committee set up to oversee the bidding and selection process recommended the granting of the Damang Mining lease to E&P after the company emerged as the best performer out of four local entities that submitted bids.

The Chairman of the committee, Maxwell Y. A. Klu, explained that after going through the entire selection process, the evaluation results showed that E&P achieved a combined score of 93.15 per cent and had, therefore, been declared the successful tenderer.

Other companies that submitted bids were Heath Goldfields Ltd, Maripoma Mining Services Ltd, and Vortex Resources Mining Group.

Consequently, E&P is expected to assume the reins of the Damang lease after it is transferred to the state on April 18, 2026.

Mr Klu presented an evaluation report of tenders for the selection of a strategic investor for the mining lease and operation of the Damang Gold Mine to the Chief Director of the Ministry of Lands and Natural Resources, Innocent Haligah, yesterday.

The tenders were submitted to the Minerals Commission under Regulation 258 of the Minerals and Mining (Licensing Regulations) 2012 (LI 2176).

Due diligence

Mr Klu explained that following a competitive tender process announced in the media to select a strategic investor, four companies responded, with two tenders shortlisted by the Mineral Titles Department of the Minerals Commission and submitted to the Tender Committee for review.

“The four tenders were then examined in accordance with the mandatory requirements set out in Phase one, which states that if any tenderer fails to comply with any of the mandatory requirements, it shall result in the tender being disqualified and not to be considered for further evaluation.”

He said the cardinal mandatory requirements for the evaluation were proof of a wholly owned Ghanaian registered company, with registration documents indicating current directors, shareholdings and beneficial ownership.

The other requirements were a valid tax clearance certificate, a valid SSNIT clearance certificate, a valid Value Added Tax (VAT) clearance certificate, a valid certificate of incorporation and payment of the application fee of GH¢100,000.

Mr Klu explained that upon verification, only Engineers & Planners and Heath Goldfields Ltd satisfied the mandatory requirements.

He said the tenders submitted by Maripoma Mining Services Ltd and Vortex Resources Mining Group “were non-responsive and therefore disqualified, as neither entity submitted any of the aforementioned mandatory documents in support of its application.”

He explained that in the next stage of the bidding procedure, E&P and Heath Goldfields Ltd were evaluated based on relevant experience.

“Based on the technical evaluation, Heath Goldfields Ltd did not attain the minimum qualifying score of 80 per cent; accordingly, its financial proposal for the operation of the Damang Gold Mine was not subjected to further evaluation in accordance with the notice,” he said.

E&P’s credentials

Touching further on E&P, Mr Klu said that although tenderers were required to demonstrate access to funding in excess of $500 million for project development, E&P provided documentary evidence of combined financing totalling $505 million from ABSA Bank and Stanbic Bank.

“In accordance with the Notice, the technical and financial scores were weighted at 80 per cent and 20 per cent, respectively.

The technical score of Engineers & Planners Ltd, applying the weight, is therefore 95.4 x 0.8 = 76.32,” he said.

Additionally, he said, the maximum financial score for the company was 20.

“The financial capacity indicated in the notice is the provision of evidence of access to funding in excess of $500 million to $600 million for project development.

Engineers & Planners Ltd provided evidence of available financing of $505 million, which falls within the prescribed financial capacity required,” Mr Klu added.

In accordance with the notice, therefore, the weighted financial score, given the maximum of required available financing of $600 million, is (505/600 x .20) = 16.83 out of the maximum financial score of 20, he stated.

Mr Klu said the combined evaluated total technical and financial score for Engineers and Planners was, therefore, 76.32 + 16.83, which amounted to 93.15 per cent.

“According to the evaluation results and in accordance with Regulation 263 of LI 2176, Engineers and Planners Ltd has achieved a combined score of 93.15 per cent and is therefore declared the successful tenderer.

“The Tender Committee, thus, recommends Engineers & Planners Ltd for the granting of the Damang Mining Lease by the Minister of Lands and Natural Resources,” he said.

Background

Damang Gold Mine is located in the Western Region, approximately 30 km north of the Tarkwa mine.

It is a major open-pit operation which was formerly operated by Abosso Goldfields Limited (71.1 per cent Gold Fields, 18.9 per cent IAMGold, and 10 per cent government-owned through carried interest).

It transitioned from Gold Fields to state control following the expiration of its 30-year lease in 2025.  In 2025, the mine produced approximately 88,000 ounces, down from its peak.

The government granted a 12-month extension for an orderly handover of the mine, which holds an estimated 3.55 million ounces of gold, and prioritised local investors for future operations.