Business News of Thursday, 12 March 2026

Source: www.ghanaweb.com

Damang youth petition government to grant mine concession to E&P

File photo of Damang Mine File photo of Damang Mine

The youth of Damang have formally petitioned the government to grant the Damang Mine concession to indigenous mining firm Engineers & Planners Company Limited (E&P), owned by Ghanaian businessman Ibrahim Mahama.

In a video circulating online, a leader of the youth argued that the E&P founder is the most capable person to effectively manage and oversee operations at the mine.

According to the group, their petition, addressed to the Majority Leader of Parliament, Mahama Ayariga, outlined reasons why Engineers & Planners has the experience and capacity to sustain mining activities and protect jobs in the area.

“We believe the government must hand over the Damang Mine concession to E&P, which is run by Ibrahim Mahama, because he possesses the necessary capacity, experience and technical know-how to ensure the mine remains viable and creates jobs for the youth in Damang,” the youth leader said in Twi.

The group also criticised the operations of Gold Fields Ghana, the company currently operating the mine through its subsidiary Abosso Goldfields Limited.

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According to the youth leader, communities in the area have seen little development despite the mine operating for more than three decades.

“For the past 35 years, when you come to our catchment communities, there has been virtually no significant developmental project undertaken by Gold Fields. What they have done is like peanuts and has not fully benefited the communities in Damang,” he said.

He added that Damang, which has a population of about 5,000 residents, has only one toilet facility from a resettlement project and lacks access to potable drinking water.

“These challenges exist across other communities within the catchment area, so we are pleading with the government to help our community by handing over the mine to E&P,” he added.

Background to the Damang Mine transition

The call comes amid ongoing discussions about the future of the Damang Mine, currently operated by Gold Fields Ghana through Abosso Goldfields Limited.

In 2023, Abosso Goldfields issued a demobilisation notice to its contract miner, Engineers & Planners, signalling a strategic shift away from pit mining operations.

In a letter dated September 4, 2023, the company indicated that its life-of-mine mining schedule had been revised. It stated that in line with its 2023 business plan, it would process only stockpiles through the end-of-mine-life in 2025, with no pit mining expected after scheduled pits were mined out by the end of December 2023.

The company subsequently instructed Engineers & Planners to begin demobilising mining equipment and personnel in accordance with the contract’s demobilisation schedule and to submit claims for work performed and demobilisation costs up to December 31, 2023.

Although a demobilisation notice does not automatically signal a transfer of ownership or operational control, industry observers say it indicates a shift in operational plans and a repositioning of the contractor ecosystem around the Damang Mine ahead of a potential transition.

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Government approval for takeover negotiations

Following the demobilisation notice, industry sources confirmed that Engineers & Planners applied to the Ministry of Lands and Natural Resources in 2024 for a “no objection” letter to explore a potential takeover pathway for the Damang operation.

The request was granted in 2024, allowing the company to enter negotiations aimed at acquiring the mine.

However, the approval came with strict conditions, stating that the government reserves the right to approve or reject any eventual transaction and that no operational rights can be transferred without explicit state approval.

Transition framework

Further correspondence from the ministry in late 2025 provided additional clarity on the government’s expectations regarding the transition process.

One letter outlined the state’s preferred operational guardrails for any future arrangement and stated that the government would not assume responsibility for liabilities incurred by Abosso Goldfields before any takeover.

Another letter indicated that Engineers & Planners, described as the current mining contractor, had been included on a transition team tasked with ensuring a seamless transfer and continuous operation of the mine.

The ministry also signalled that it had no objection to the parties finalising a share acquisition arrangement, provided the agreement is submitted for approval and does not undermine the state’s reversionary rights.

Although the correspondence does not amount to a final decision on who will operate the Damang Mine, it places Engineers & Planners in a strong position within the transition process as discussions about the mine’s future continue.

Watch the video below:



MA