ACEP Urges Government to Be Cautious in Selecting New Investors for Damang Mine

ACEP Urges Government to Be Cautious.

The Africa Centre for Energy Policy (ACEP) is urging the government to tread carefully in choosing new investors for the Damang Mine, especially as the current lease held by Abosso Gold Fields Limited nears its expiration. ACEP believes that any future decisions about the mine’s operations must prioritize companies that possess both the financial strength and the necessary experience to run a large-scale mining operation effectively

According to ACEP, mining is a highly capital-intensive venture. Therefore, choosing the right investor is not just about finding a willing buyer, but one who has the capability to inject the kind of significant funding required to sustain the mine over the long term. They pointed out that continuing operations at the Damang Mine will require more than $600 million in additional investment. This level of funding cannot be taken lightly, and ACEP believes the public deserves a clear and credible plan from any company looking to take over.

READ: Parliament Honors Late Clerk Samuel Ntim Darkwa as Funeral Rites Are Set

In a statement, ACEP emphasized that any takeover proposal must be backed by a strong financial strategy and a realistic operational plan. The Ghanaian public, they say, needs to be assured that whoever is stepping in is ready and capable of delivering on the huge financial demands the mine presents.

The Centre also raised concerns about the ability of the Minerals Income Investment Fund (MIIF) to take on a project of this magnitude. While MIIF might seem like a logical candidate to step in—given its role in managing the country’s mineral royalties—ACEP argues that it has not yet shown the kind of operational preparedness required to handle a mine like Damang. In particular, they noted MIIF’s limited track record in direct mine management, suggesting it may be premature to hand over such a major project to the Fund without further capacity-building.

Instead of placing the full burden of the mine’s future on the shoulders of any single government agency, ACEP recommends a more cautious approach. They propose that the government should consider gradually acquiring equity in the mine while sharing the risks and responsibilities with an experienced investor. This staggered acquisition model would allow the government to build capacity and ensure continuity, without exposing the country to unnecessary financial or operational risks.

ALSO READ: GAFCONM admits first batch of BSc Nursing and BSc Midwifery students

Despite their caution, ACEP did commend the government for its recent decision to extend the lease of the Damang Mine to Abosso Gold Fields Limited for another 12 months, pending parliamentary ratification in May 2025. This extension, they noted, gives the government more time to prepare for a smooth transition and to carefully assess potential new partners.

ACEP also welcomed the formation of a joint asset transitional team, a body that will oversee the handover process when the lease officially comes to an end. The Centre sees this as a step in the right direction and an indication that the government is taking the transition seriously.

Still, ACEP was clear in its call for transparency during this critical period. They stressed that every step of the transition—from investor selection to final ownership transfer—must be carried out in a manner that is open and accountable to the Ghanaian people. Given the strategic importance of the Damang Mine to the country’s economy and resource management, ACEP believes it’s essential that the public be kept informed and that all decisions be made in the best interest of Ghana.

In summary, ACEP’s position is that while the government has taken some positive steps regarding the Damang Mine, it must remain focused on long-term sustainability. This means choosing partners not just based on availability or convenience, but based on proven capability and financial strength. It also means avoiding over-reliance on state agencies that may not yet be ready to manage such large-scale operations on their own.

For More; CLICK Here