Audio By Carbonatix
The Suame MP, John Darko, has urged government to ensure that Ghana secures maximum value from the award of the Damang Gold Mine to Engineers and Planners Limited.
He stressed the need for stronger safeguards around equity participation and long-term benefits.
In a post on his Facebook page on Sunday, April 12, the MP acknowledged that awarding the mine to a wholly Ghanaian-owned firm represents progress for local participation.
However, he cautioned that ownership alone is not enough, warning that poorly structured agreements could lead to value loss or capital flight if not carefully managed.
He described the Damang Mine, which reverted to the state after the expiration of Gold Fields’ lease, as a critical national asset with significant economic potential.
According to him, the mine is estimated to contain about 3.5 million ounces of gold, potentially worth billions of dollars, raising concerns about whether the current arrangement fully reflects its true value.
“The key issue is whether Ghana is capturing the full value of this asset,” he stated, while also pointing to the absence of a clearly communicated independent technical and financial valuation.
He explained that international best practice typically involves detailed assessments of reserves, capital requirements and long-term revenue projections to guide negotiations and equity structures.
The MP further called for increased state participation, suggesting that Ghana should consider raising its equity stake beyond the existing 10 per cent free carried interest.
He proposed a more active role for institutions such as the Minerals Income Investment Fund to ensure both immediate and long-term gains for the country.
He also raised concerns about the pace of the tender process and public perceptions around transparency, warning that these could undermine trust and set unfavourable precedents.
“This conversation is not about opposing local participation, but about ensuring Ghana wins fully and fairly,” he added.
Government has, however, confirmed Engineers and Planners Limited as the successful bidder after meeting all technical and financial requirements, with the company expected to take over operations and spearhead further investment in the mine.
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