Ghana weighs local bids for $1bn revival of Gold Fields' Damang mine
Ghana is assessing three bids from local investors to take over Gold Fields’ Damang gold mine, which requires up to $1 billion of investment to revive, the mining regulator told Reuters, nearly a year after the government seized control of the asset.
Ghana, which is seeking to boost local ownership in its mining sector, rejected Johannesburg-based Gold Fields’ lease‑renewal bid and took control of Damang mine in April, breaking with years of automatic extensions.
Authorities said the move followed the company’s failure to declare verifiable reserves and formed part of a tougher push to ensure gold assets deliver greater value to Ghanaians.
The South African miner was issued a 12-month lease to resume open-pit mining and establish reserves.
Gold Fields, which continues to operate the nearby Tarkwa mine, did not immediately respond to a request for comment.
'UP TO $1-BILLION NEEDED TO REVIVE MINE'
Isaac Tandoh, acting head of the Minerals Commission, Ghana's mining regulator, told Reuters on Monday that Gold Fields' Damang lease, which expires April 18, would not be renewed.
Mining contractors Engineers & Planners (E&P) and BCM International, and consortium Vortex Resources, have applied to own the mine, Tandoh said, and the regulator was assessing which bidder could meet its challenges.
E&P, BCM and Vortex confirmed their bids but declined to comment further.
A source familiar with the bidding process said E&P, Damang's current contractor, was a leading contender, having operated there for about 25 years.
“A decision is expected as soon as possible," Tandoh said, adding that reviving the mine would require "$600 million to $1 billion."
Ghana, Africa's top gold producer, is key to Gold Fields, with output from Tarkwa and Damang underpinning its strong 2025 earnings.
Ghana introduced a sliding‑scale royalty regime this month to capture more revenue from surging commodity prices.
