Minority explains why govt should have secured a 30% stake in Damang Mine

The Minority in Parliament has criticised the government’s approval of the transfer of the Damang Mine, arguing that the transaction should have been used as an opportunity to increase Ghana’s equity participation in the mining asset from 10 per cent to between 20 and 30 per cent.

The caucus said the state could have secured greater financial benefits and long-term revenue from the mine if the terms of the agreement had been subjected to more extensive negotiations before approval.

The Ranking Member on the Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, told journalists that Parliament should have undertaken a comprehensive review of the transaction and examined all relevant documents before endorsing the deal.

He argued that Damang was a strategic national asset and therefore required a higher level of scrutiny, given its importance to Ghana’s mining sector.

“Damang is not an ordinary mine. It is one of Ghana’s important mining assets and its transfer has attracted significant national interest,” he said.

Mr Ampratwum-Sarpong noted that the new operator, Damang Gold Mine, is a special purpose vehicle (SPV) of Engineers and Planners Limited, a company funded by the President’s brother.

He, however, stressed that the relationship between the company and the President’s brother did not in itself suggest any wrongdoing or prevent the company from participating in the mining industry.

“That fact by itself does not establish any impropriety, nor does it disqualify the company from participating in Ghana’s mining industry,” he stated.

According to him, the connection nonetheless increased public interest in the transaction and placed an additional responsibility on Parliament to ensure that the agreement was subjected to transparent and independent scrutiny.

“It undeniably heightens the public interest in the transaction and places an even greater responsibility on Parliament to ensure that every aspect of the award is subjected to rigorous, transparent and independent scrutiny,” he added.

The Minority Ranking Member maintained that lawmakers should have insisted on a review of all critical information surrounding the agreement before granting approval.

He argued that the transfer presented an opportunity for government to negotiate better terms for the country, particularly by increasing the state’s shareholding in the mine.

“Rather than merely approving a transfer of ownership, government should have pursued an increase in the state equity participation from the current 10 percent to maybe between 20 to 30 percent, thereby securing greater long-term value and revenue for the Ghanaian people from an already producing mining concession,” he said.

Mr Ampratwum-Sarpong said renegotiating the state’s interest during the transition period would have helped ensure that Ghana gained maximum economic benefits from one of its major producing gold assets.