The Africa Centre for Energy Policy (ACEP) has cautioned the government to be circumspect in the selection of investors for the Damang Mine when the lease extension granted to Abosso Gold Fields Limited expires. 

It is therefore calling on the government to ensure that companies with the financial muscle and experience are considered, bearing in mind the capital-intensive nature of mining.

The statement added that this is imperative due to the quantum of investment required to keep the mines operational.

“The government must also recognise the significant funding needs of the Damang project, which requires over $600 million in additional investment to sustain operations. Any proposed takeover must convince the Ghanaian public of a credible financing strategy and operational plan.”

It furthered that the lack of operational readiness of the Minerals Income Investment Fund to manage a mine of this scale should be a guide in ensuring the participation of competent agencies and companies.

“The Minerals Income Investment Fund (MIIF), the most convenient candidate for such an undertaking, has not demonstrated the operational readiness to manage a mine of this scale, especially given its track record in handling mineral royalties for investment purposes.”

It recommended that “the more prudent option would be for the government to stagger its equity acquisition and strategically share the risk with an experienced investor.”

While it applauded government for its decision to grant a 12-month extension of the Damang Mine lease to Abosso Goldfields Limited, pending parliamentary ratification in May 2025, ACEP charged government to demonstrate transparency during the transition period.

It also expressed contentment for the establishment of a joint asset transitional team, which is expected to ensure the successful changeover of ownership of the mine to the people of Ghana after the lease elapses.