MR John Darko, the New Patriotic Party (NPP) Member of Parliament (MP) for Suame, has raised concerns over the tender process for the Damang Gold Mine, emphasising the need for transparency and fairness.
That, he explained, will ensure that Ghana maximises value from its national assets.
“I am not against local participation in Ghana’s mining industry, but local participation must be done right—in a way that creates value for Ghana, not one that inadvertently leads to value erosion or capital flight,” Mr Darko said in a statement issued to the Ghana News Agency on Monday.
It questioned the proportionality of allocating an asset with an alleged potential value of $7 billion based primarily on proof of funding at a fraction of its underlying value.
“How do we justify allocating an asset of that magnitude based primarily on proof of funding at a fraction of its underlying value?” the statement asked.
According to the statement, Mr Darko, also a Natural Resources Law Lecturer at Ghana Institute of Management and Public Administration (GIMPA), called for an independent valuation of the Damang mine to determine its true worth and ensure Ghana secures a fair deal.
It said, “In transactions of this scale globally, there is always a robust, independent technical and financial valuation.”
The statement also advocated for a material equity stake for the state, potentially in the range of 30-40 per cent or more, depending on valuation and risk-sharing.
“Ghana already has a 10 per cent free carried interest in mining assets. But for an asset of this scale and significance, one would expect a material equity stake for the state,” it said.
According to the statement, the Damang mine is estimated to host approximately 3.5 million ounces of gold, with a conservative margin of $2,000 per ounce, implying a potential value of $7 billion. -GN
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