Ghana has selected local mining services company Engineers & Planners Ltd to take over Gold Fields’ Damang gold mine, the mines minister said.
Ghana, which is seeking to boost local ownership in its mining sector, rejected Johannesburg-based Gold Fields’ lease renewal bid and took control of the mine last year, breaking with years of automatic extensions.
It then began assessing local bids for a potential $1 billion revival of the asset.
In a statement, Emmanuel ArmahKofi Buah said mining regulator, the Minerals Commission, had recommended E&P as the successful bidder.
The company demonstrated it had access to $505 million in financing, meeting the government’s requirement that bidders show funding capacity of at least $500 million. It also scored strongly on technical experience, equipment, safety and local content, the statement said.
Gold Fields, which has operated Damang for more than two decades, initially said it may sell the mine, citing its limited remaining life and lack of economic reserves.
It said last month it was working to ensure the smooth transition of the mine to a new operator.
Authorities have said the tender aims to keep the mine operating, protect jobs and increase local participation in Ghana’s mining sector.