A planned transition at the Damang Mine has drawn scrutiny within Ghana’s extractive sector, amid concerns about the process to select a new operator as the current lease held by Gold Fields nears expiry.
The debate has intensified following attempts by Engineers & Planners (E&P), a firm linked to Ibrahim Mahama, brother of President John Dramani Mahama, to take control of the asset before the conclusion of the formal takeover process.
Policy analyst Bright Simons of the IMANI Centre for Policy and Education has raised concerns about the transparency and technical soundness of the tendering process, warning that the transition risks being undermined by what he describes as rushed decision-making.
A key issue highlighted is the seven-day window given to prospective bidders to submit proposals for a project that requires at least $500 million in financing, alongside long-term development planning, geological assessments and multiple statutory approvals.
By comparison, institutions such as the African Development Bank recommend a minimum of 45 days for expressions of interest in similar transactions, while the World Bank sets at least 30 days even for less complex contracts.
Only one of the four bids submitted is reported to have met full compliance requirements, an outcome Mr Simons argues reflects the constraints of the timeline.
He suggests this may have limited competition and potentially favoured bidders with prior involvement in efforts to acquire the mine.
Further concerns have been raised over reported claims by E&P of up to $740 million against Gold Fields linked to disputes over the Damang and Tarkwa mines, an amount close to the estimated capital needed to restart operations at Damang.
Mr Simons also questioned what he described as inconsistencies in the tender requirements.
While bidders were expected to show committed financing, Damang is reported to lack a bankable feasibility study for its next phase, typically a key condition for securing funding and a requirement under Ghana’s regulatory framework before a lease is granted.
He additionally queried the urgency of the process, noting that authorities had several months following the approval of a transitional lease to organise a broader tender, but instead opted for a shortened timeline.
With Gold Fields expected to exit by 18 April, there are reports that efforts are underway to finalise, negotiate and secure parliamentary approval for a new lease within a limited timeframe.
Mr Simons said the situation highlights the importance of transparency, technical rigour and due process in managing major national assets, warning that building credible mining operators requires careful planning rather than accelerated decision-making.
