Member of Parliament (MP) for Suame, John Darko, has called for a stronger focus on value protection and equity participation following the award of the Damang Gold Mine to Engineers and Planners Limited.
In a detailed statement on the tender process and local participation, shared with Citi News on Sunday April 12, he stressed that while the selection of a wholly Ghanaian-owned company is a positive step, it is critical that the structure of the deal ensures maximum benefit for the country.
According to him, local participation must go beyond ownership and be anchored on creating long-term value, warning that poorly structured arrangements could lead to value erosion or capital flight.
The Damang Mine, which reverted to the state after the expiration of Gold Fields’ licence, has been described by Darko as a strategic national asset with significant economic potential.
He noted that the mine is estimated to hold about 3.5 million ounces of gold, suggesting a potential value of several billion dollars, and questioned whether the process leading to its award adequately reflects that value.
While acknowledging that the tender required bidders to demonstrate access to at least $500 million in financing, he raised concerns about the proportionality between that requirement and the overall value of the asset.
“The key issue is whether Ghana is capturing the full value of this asset,” he indicated.
Darko further highlighted the absence of a clearly communicated independent technical and financial valuation, describing it as a critical component in transactions of such magnitude.
He explained that global best practice typically involves comprehensive assessments of reserves, capital expenditure needs and long-term revenue potential, which then guide equity structuring and negotiations.
Without such a framework, he warned, there is a risk of undervaluing national resources.
He also called for increased state participation in the project, suggesting that Ghana should consider a higher equity stake beyond its current 10 percent free carried interest.
Institutions such as the Minerals Income Investment Fund, he said, should play a more active role to ensure the country benefits from both immediate revenues and long-term gains.
The MP cautioned that the speed of the tender process and perceptions around transparency could create risks, including weakened public trust and unfavourable precedents for future transactions.
He added that a more structured approach, where the state retains stronger control and partners private firms through clearly defined equity arrangements, would better safeguard national interest.
“This conversation is not about opposing local participation, but about ensuring Ghana wins fully and fairly,” he stated.
The government has confirmed Engineers and Planners Limited as the successful bidder for the Damang Mine after meeting all technical and financial requirements set out in the tender process, with the company expected to take over operations and drive further investment in the mine.
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