Ghana says it will favor local buyers as Ibrahim Mahama bids for Damang gold mine

Ghana is moving to keep more of its gold assets in local hands as the government prepares to take control of the Damang gold mine and select a new owner. Authorities say only Ghanaian-owned companies will be allowed to bid for the asset, a move that comes as businessman Ibrahim Mahama seeks to expand his presence in the country’s mining industry.

The Damang mine, currently owned by Gold Fields Ltd., is set to transfer to the state after the government declined to renew the company’s mining lease last year. Officials granted a 12-month extension to allow for what they described as a smooth transition to Ghanaian ownership. The government has now launched a tender process, with offers due this week.

Ghana favors 100% local ownership

A notice dated March 24 and signed by Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah states that only companies “100 percent owned by Ghanaian citizens” can participate. The move reflects a broader push by Africa’s biggest gold producer to increase local ownership in the mining sector, which remains dominated by multinational companies such as AngloGold Ashanti Plc, Newmont Corp., and China’s Zijin Mining Group Co. Ltd.

The Damang mine, which began production nearly 30 years ago, is one of two Gold Fields operations in Ghana. It produced about 88,000 ounces of gold last year, down from its peak of more than 300,000 ounces two decades ago. Gold Fields is scheduled to hand over the mine to the government on April 18 while also negotiating a lease extension for its larger Tarkwa mine.

According to the tender document, the eventual owner must have experience in open-pit mining and access to more than $500 million to fund future development. Gold Fields also conducted a study showing the mine could continue producing for at least another decade with fresh investment. The sale comes at a time when Ghana has seen increased deal activity in the gold sector. In October 2024, Zijin Mining agreed to buy the Akyem gold mine from Newmont for $1 billion, marking one of the largest recent transactions in the country’s mining industry.

Ibrahim Mahama eyes Damang gold mine

Among those seeking to acquire Damang is Engineers and Planners Company Limited, led by Ghanaian businessman Ibrahim Mahama. The firm is one of three shortlisted bidders, alongside BCM International and a consortium known as Vortex Resources. Mahama recently expanded his mining footprint after bringing the Black Volta gold project into production last year.

His involvement has drawn attention because he is the younger brother of President John Dramani Mahama, who returned to office in January 2025. Engineers and Planners has said its interest predates the current administration, noting that discussions began in September 2023 when Gold Fields invited the company to demobilize equipment, a proposal that later evolved into a purchase plan. The firm has also filed a defamation suit in Accra in response to claims about political influence.

Ghana weighs bids for gold mine

Regulators from Ghana’s Minerals Commission are reviewing proposals from the shortlisted companies, focusing on their financial strength and operational experience. Gold Fields’ feasibility study suggests the mine could produce between 100,000 and 150,000 ounces annually for at least nine years.

However, maintaining those levels would require between $500 million and $600 million in new investment. The government is expected to announce its decision after reviewing the bids, a move that could reshape ownership of one of Ghana’s historic gold assets and signal a broader shift toward local control in Africa’s mining sector.