Ghana is evaluating three bids from local investors to take over Gold Fields’ Damang gold mine, which requires up to $1 billion to restart operations, the country’s mining regulator told Reuters. This comes nearly a year after the government seized control of the asset.
The government, seeking to increase local ownership in the mining sector, rejected Johannesburg-based Gold Fields’ lease-renewal bid and took control of the Damang mine in April, ending years of automatic extensions.
Authorities said the move followed Gold Fields’ failure to declare verifiable reserves and is part of a broader effort to ensure gold assets deliver greater value to Ghanaians.
The South African company was issued a 12-month lease to resume open-pit mining and establish reserves. Gold Fields, which continues to operate the nearby Tarkwa mine, did not immediately respond to a request for comment.
“Up to $1 billion needed to revive mine,” Isaac Tandoh, acting head of the Minerals Commission, told Reuters on Monday, noting that the Damang lease, which expires April 18, would not be renewed.
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Three bidders, mining contractors Engineers & Planners (E&P) and BCM International, along with the consortium Vortex Resources, have applied to take ownership of the mine, Tandoh said, and the regulator is assessing which bidder can meet the mine’s operational challenges.
E&P, BCM, and Vortex confirmed their bids but declined further comment. A source familiar with the process said E&P, Damang’s current contractor, is a leading contender, having operated there for about 25 years.
“A decision is expected as soon as possible,” Tandoh said, adding that reviving the mine would require “$600 million to $1 billion.”
Ghana, Africa’s top gold producer, is a key contributor to Gold Fields, with output from Tarkwa and Damang underpinning the company’s strong 2025 earnings.
This month, Ghana introduced a sliding-scale royalty regime to capture more revenue from rising commodity prices.
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