Minority Demands Full Disclosure on Damang Mine Handover to E&P

The Minority Spokesperson on Legal Affairs, Hon John Darko, has raised serious concerns regarding the transparency and economic viability of the transition of the Damang Gold Mine to Engineers & Planners (E&P).

While affirming that the Minority is not against local participation in the mining sector,

Hon Darko warned that such involvement must be executed through a process that creates genuine value for the country rather than facilitating capital flight or value erosion.

The core of the dispute lies in the speed and scale of the transaction. Following the expiration of Gold Fields’ license, the Damang mine—a strategic national asset—reverted to the State.

However, the subsequent tender process was reportedly completed within a remarkably short seven-day window, requiring bidders to show proof of funding for $500 million.

Hon Darko, who also lectures in Natural Resources Law at GIMPA, pointed out a massive disparity between this funding requirement and the mine’s actual potential.

”Damang is estimated to host approximately 3.5 million ounces of gold,” Darko noted. “At a conservative margin of $2,000 per ounce, this implies a potential value in the region of $7 billion.

How do we justify allocating an asset of that magnitude based primarily on proof of funding at a fraction of its underlying value?”

The Minority is demanding an independent technical and financial valuation to determine the mine’s remaining reserves and long-term cash flow potential.

Mr Darko argued that in any global transaction of this scale, such a valuation is the bedrock for negotiating ownership and value sharing.

He suggested that without this step, Ghana risks severely undervaluing its resources, questioning what the price tag would have been had E&P purchased ú.the mine directly from Gold Fields in a standard commercial negotiation.

Beyond valuation, the picture Minority is pushing for a more significant state interest.

While Ghana typically holds a 10% free carried interest in mining assets, Darko argued that for an asset as significant as Damang, the State should hold a material equity stake between 30% and 40%.

He specifically questioned the level of participation by the Minerals Income Investment Fund (MIIF) in the current deal.

”This conversation is about ensuring Ghana wins fully and fairly,” Darko emphasized. “We must move from ‘who gets the asset’ to ‘how does Ghana maximize value from the asset,’ because these resources are national assets held in trust for current and future generations.”

The Minority warned that a process perceived as rushed or anchored on political patronage creates significant risks, including the loss of public trust and the setting of a weak precedent for future mining allocations.

They proposed a model where the government retains firm ownership while inviting private partners to operate the mine or enter clearly structured equity arrangements that prioritize the national interest.

Source: Felix NYAABA/ExpressNewsGhsna.com