Following the formal transition of the Damang Gold Mine into the hands of Engineers & Planners Limited, CEO Ibrahim Mahama used his first major public address to outline an ambitious development agenda tied to the mining asset, blending operational confidence with wide-ranging infrastructure commitments for surrounding communities.
The takeover follows the expiration of Gold Fields Limited’s lease on April 18, 2026, and the subsequent handover of the asset to the Government of Ghana, which then awarded the lease to Engineers & Planners after what authorities describe as a competitive bidding process. The Minerals Commission has stated that the decision was based on technical and financial evaluation, including E&P’s reported ability to secure $505 million in financing—above the government’s $500 million threshold.
“We did a bankable study”
Addressing stakeholders after the acquisition, Mahama emphasized that the transaction was backed by financial due diligence and investor interest.
“We have done a bankable study, we looked at it, and noticed that we could do it,” he said.
He added that the project had already attracted strong financing interest, with multiple lenders engaged in competitive discussions around funding the operation.
“One has given us $650 million, another $600,” he noted, describing what he said was competing interest from banks.
Infrastructure commitments tied to the mine
Beyond the financial structure of the deal, Mahama used the platform to outline a series of infrastructure proposals for Damang and surrounding communities.
Among the most notable was a plan to develop aviation infrastructure:
“We’ve applied for Damang to have an airport. And Damang, within six months, will have an airport such that we can fly to Accra easily.”
He also referenced plans for road infrastructure linking Damang to nearby areas, suggesting improved connectivity within a two-year horizon.
Cape Coast “In the next two years, we’ll be able to drive from here to c on a concrete road,” he said.
Social infrastructure and local reinvestment
Mahama further indicated that the development agenda would extend into health and education.
“We are looking to put hospitals… I’m looking to put two big hospitals in Damang,” he said, adding that these facilities could serve multiple surrounding communities.
He also referenced plans for educational infrastructure, noting a proposal received from a local youth group to establish a school system for surrounding communities.
At the core of his message was a commitment to reinvestment within the local economy.
“Whatever money we make from here, we will reinvest it here,” he said.
A mature asset in transition
The Damang Mine enters E&P’s portfolio at a critical stage in its production lifecycle. Output has declined in recent years, falling from 153,000 ounces in 2023 to 135,000 ounces in 2024, while costs have risen significantly. All-in sustaining costs increased from US$1,679 to US$2,002 per ounce over the same period.
Despite these challenges, the mine generated US$138 million in adjusted free cash flow in 2024, supported largely by elevated global gold prices and reduced capital expenditure linked to its mature operational stage.
End of a two-decade era
The transition also marks the end of more than 20 years of Gold Fields’ operation at Damang, where it previously held a 90 percent stake in partnership with the Government of Ghana.
The move to transfer control to a domestic operator forms part of a broader policy shift aimed at increasing Ghanaian participation in the mining sector, particularly in mature assets where operational restructuring rather than exploration expansion is required.
However, the decision has also drawn public attention due to E&P’s founder, Ibrahim Mahama, being the brother of the sitting president, adding a layer of political scrutiny to an already significant industrial transition.
