Accra: A three-decade-old Ghanaian mine owned by Gold Fields has become a bellwether for the West African nation's ambitions to boost local ownership in a key sector.
According to Ghana Web, mature mines that are unloved by multinational operators and in need of revitalization should be ideal candidates for takeovers by homegrown companies in Africa's biggest gold producer. However, elevated bullion prices mean that even older assets are still coveted by international players with substantial financial resources.
When Newmont offloaded the Akyem project in 2024, domestic businesses were unable to compete with the $1 billion offered by China's Zijin Mining. To prevent being priced out this time, Ghana's government has limited a tender for Gold Fields' Damang mine-set to be transferred to the state on April 18-to companies wholly owned by its own citizens. Gold Fields, focusing on other projects in its global portfolio, had been considering selling Damang, but the authorities disrupted those plans by refusing to renew the mine's lease. Negotiations are also ongoing around extending licenses for the company's larger Tarkwa operation.
Engineers and Planners, a well-known contracting firm owned by President John Mahama's brother and already working at Gold Fields' assets in Ghana, has been linked with acquiring Damang. This trend reflects the push by African leaders-from Mali to Zimbabwe-for a larger share of revenues generated by their minerals. The same aspiration motivated Ghana's introduction earlier this month of significantly higher royalty rates for gold miners.
Meanwhile, the example of Damang could hold lessons for owners of other gold mines nearing the end of their operational life: their fate could soon be out of their hands.