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Ghana restricts Damang Gold Mine sale to Ghanaian firms, 88,000 ounces produced last year
Ghana has limited the sale of the Damang Gold Mine to companies fully owned by Ghanaian citizens. This move aims to increase local involvement in the country's mining industry. The mine's lease with Gold Fields ends soon. Damang produced 88,000 ounces of gold last year. Buyers must show strong financial power and ability to operate the mine for at least ten years. This policy reflects a wider t...
Only companies 100% owned by Ghanaian citizens could apply. The Ministry of Lands and Natural Resources is managing this process. This rule is part of a bigger plan. The aim is to boost local control in mining. This industry has been mostly controlled by big foreign companies like AngloGold Ashanti and Newmont.
The Damang mine has operated for almost 30 years. It produced about 88,000 ounces of gold last year. This is less than its highest output. Despite this, it remains an important asset. Ghana is Africa's top gold producer. Buyers must show strong technical and financial ability. They need to show experience in open-pit mining. They must also be able to run the mine for at least ten years. Access to over GHS5.8 billion (500 million USD) for development funding is also required.
This action shows a wider trend in Africa. Countries like Mali and Zimbabwe also want more control over resource earnings. In Ghana, the Akyem mine was sold recently. Zijin Mining Group bought it from Newmont for GHS11.6 billion (1 billion USD) in October 2024. Gold Fields is also talking to the government. They want to renew the lease for their larger Tarkwa mine. The result of the Damang sale will show how Ghana's new ownership rules for mining will work. It will test the focus on local involvement and keeping value within the country.
Source: StatsGH — Ghana's data-driven news platform