GHANA is assessing three bids from local investors to take over Gold Fields’ Damang gold mine, nearly a year after the government seized control of the asset, said Reuters citing the country’s mining regulator.
The Minerals Commission’s acting head, Isaac Tandoh, told Reuters that Gold Fields’ lease on Damang, which expires on 18 April, would not be renewed. Reviving the mine would require between $600m and $1bn of investment, he said.
Mining contractors Engineers & Planners and BCM International, along with consortium Vortex Resources, have submitted bids to acquire the operation.
A source familiar with the process said Engineers & Planners, which has worked at Damang for around 25 years, was a leading contender, said Reuters. All three bidders confirmed their interest but declined to comment further. “A decision is expected as soon as possible,” Tandoh said.
Ghana seized Damang in April last year after rejecting Gold Fields’ lease-renewal application, citing the company’s failure to declare verifiable reserves. The South African miner was granted a 12-month lease to resume open-pit mining and establish a resource base.
Gold Fields, which continues to operate the nearby Tarkwa mine, did not respond to a request for comment, said Reuters.
Ghana, Africa’s largest gold producer, this month introduced a sliding-scale royalty regime to capture more revenue from rising commodity prices.
