E&P secures Damang Mining Lease after meeting US$500m financing threshold
The Ministry of Lands and Natural Resources has granted approval for the award of the Damang Mining Lease to Engineers and Planners Ltd (E&P), bringing to a close a competitive tender process aimed at reinvigorating one of Ghana’s key mining assets.
In a statement released on April 7, 2026, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, indicated that he had endorsed the recommendations put forward by a dedicated Tender Committee, which adjudged E&P as the most qualified firm to extend the operational lifespan of the Damang Mine over the next decade.
E&P secured the lease after emerging as the top contender among four firms that submitted bids before the March 31 deadline. Findings from the Tender Committee revealed that E&P was the only bidder to fully meet the stringent financial criteria, notably providing clear proof of access to financing that satisfied the minimum requirement of US$500 million.
According to the Committee, E&P also exhibited a strong grasp of the Damang Mine’s geological characteristics and existing infrastructure, backed by a detailed operational strategy to sustain production for at least ten years.
“The Company demonstrated the highest capability to operate the Damang mine, substantiated by their submission of the most viable tender,” the Committee stated in its report.
The evaluation process was conducted in two distinct stages in accordance with Legislative Instrument (LI) 2176. During the initial phase, which focused on mandatory compliance requirements—including tax clearance, SSNIT and VAT documentation, and a non-refundable application fee of GH¢100,000—two firms were disqualified.
Maripoma Mining Services Ltd and Vortex Resources Mining Group were deemed non-compliant after failing to provide the requisite documentation.
This left E&P and Heath Goldfields Ltd to proceed to the technical assessment stage. However, Heath Goldfields did not meet the minimum technical score threshold of 80 percent, resulting in the exclusion of its financial proposal from further consideration.
The approval is expected to play a critical role in sustaining operations at the Damang Mine, which remains a vital contributor to the local economy. The selection of a fully Ghanaian-owned firm that meets international financing standards also underscores government’s ongoing push to promote local participation within the extractive sector.
The Minerals Commission has subsequently been instructed to undertake the necessary regulatory processes to formalise the lease, paving the way for a smooth transition and the rollout of a new 10-year operational plan.
Read Details of Statement Below:
