Accra: Mr John Darko, the New Patriotic Party (NPP) Member of Parliament for Suame, has raised concerns over the tender process for the Damang gold mine, emphasising the need for transparency and fairness. That, he explained, will ensure that Ghana maximises value from its national assets.
According to Ghana News Agency, Mr Darko, who is also a Natural Resources Law Lecturer at the Ghana Institute of Management and Public Administration (GIMPA), issued a statement highlighting the importance of conducting the tender process in a manner that benefits the nation. He stressed that while local participation in Ghana's mining industry is not opposed, it must be structured to prevent value erosion or capital flight.
The statement questioned the logic behind allocating a significant asset, with an estimated potential value of $7 billion, based mainly on proof of funding at a fraction of its actual worth. Mr Darko called for an independent valuation of the Damang mine to ascertain its true value and secure a fair transaction for Ghana.
The statement highlighted the global standard of conducting robust, independent technical and financial valuations for transactions of such scale. It suggested that the state should hold a material equity stake, potentially in the range of 30-40 per cent or more, depending on the valuation and risk-sharing assessments.
Currently, Ghana holds a 10 per cent free carried interest in mining assets. However, the statement argued that for an asset as significant as the Damang mine, a more substantial equity stake for the state is expected. The mine is estimated to contain approximately 3.5 million ounces of gold, with a conservative margin of $2,000 per ounce, supporting the potential value of $7 billion.