Dr. Charles Mensa
The Institute of Economic Affairs (IEA), and the Ghana National Chamber of Commerce and Industry (GNCCI), have urged the government to consider awarding the Damang Mine acquisition to indigenous firm Engineers and Planners Company (E&P).
According to the two institutions E%P has the capacity to effectively manage the mine for the benefits of the country.
Founder and chairman of IEA, Dr. Charles Mensa told a section of journalists in an interview during the launch of the Nuclear Energy programme at its office in Accra that despite significant mineral resources, the country continues to struggle economically, primarily due to the foreign ownership of its mines.
“I think the issue has to do with who owns our natural resources, why and where do we start from. There is the need for us to own our resources. E&P as an example is doing very well and we are seeing it so they need to be supported to take over the Damang Mine. We have about 40 mines in this country and yet we are always broke,” he said.
He indicated that E&P’s interest to take over the Damang mine is a model of success that has to be celebrated by Ghanaians.
Dr. Mensa noted these mines provide minimum benefits to the country as their profits are repatriated abroad.
He cited the example of South Africa, where gold is a visible part of the landscape, compared to Obuasi, where the mineral wealth has led to little improvement for the local people.
“The 40 or so gold mines are not owned by us. They are owned by foreigners. They repatriate everything. Our goal at the IEA is to push the government to find local people to start owning our natural resources,” he stated.
The chairman further suggested that if Ghanaian firms could own and operate these mines, it would lead to job creation, the growth of local industries, and a stronger economy.
“The recent discussion where E&P has taken over Damang mine should be celebrated. We should celebrate the fact that E&P is the first Ghanaian to own and take over this Damang mine. If we own the big mines, that can give us enough reserves, that would stabilise our currency, it will bring down inflation and make life bearable for Ghanaians. National ownership would result in greater economic stability,” he added.
Dr. Mensa who acknowledged that though concerns about capacity may arise, given that state-owned enterprises in Ghana have often been poorly managed, he emphasised that such challenges may be addressed by private sector involvement through local companies.
“E&P as an indigenous company has successfully managed operations for foreign firms like AngloGold Ashanti. If it can manage some aspects for the foreign entity, why can’t it manage our mineral wealth for us,” he asked.
“Such a model would not only benefit the local economy but also reduce the country’s dependency on foreign aid. We should encourage more Ghanaians to do that. If we don’t, we are going to remain poor for a long time,” he said.
Dr. Mensa further mentioned that the government should also stop renewing the leases for the various mining firms whose licenses would expire in the next two years and urged the State to take over the operations and hire local companies to manage them under service contracts.
“There is nothing wrong if the State refuse to renew those licenses. Let the state take over and hire private sector people to run those mines for us and pay them a service fee. This is not new. It’s done everywhere. It’s just a lack of knowledge. Let’s have sovereignty over our natural resources as the President has said,” he noted.
“By encouraging local ownership and management of our resources, the country can build a self-sustaining economy and stop relying on the IMF for support. The private sector can manage it for us,” he added.
Stephane Abbas Miezan, President of the Ghana National Chamber of Commerce and Industry (GNCCI), in an interview on Joy Business described the move by E&P to take over the Damang Mine as ‘a piece of good news’.
“Recently we heard that Engineers and Planners is taken over the Damang Mine site. That is a very good news for us to develop indigenous industries”.
“I want to entreat the government and subsequent government so that all of our natural resources can be managed by indigenous Ghanaian companies,” he stated.
Mr. Abbas Miezan further commended the Chief Executive of E&P, Ibrahim Mahama for ‘taking up such a mantle for the country’.
According to management of E&P, as part of efforts to strengthen operations and expand capacity, it has dispatched 30 semi-knockdown Caterpillar 785D Dump Truck units to its operational base in Tarkwa.
It said the consignment forms part of a broader order of high-capacity dump trucks, representing the final delivery to the site.
E&P indicated that the phased deployment of the equipment reflects a strategic efforts to scale up fleet capacity and enhance efficiency in its mining operations.
“The move underscores E&P’s continued investment strengthening its logistics and haulage capabilities, positioning the company to improve output and operational performance at the Tarkwa site,” E&P management said.
E&P further mentioned that its investment in heavy-duty mining equipment dates back to 2002.
It said in 2018, the company committed an estimated $650 million to its operations in Tarkwa and Damang Mine, with plans to further invest around $1.2 billion in Tarkwa and Damang Mines.
“The arrival of the final batch of dump trucks does not only strengthens E&P’s fleet but also reinforces the scale of capital required to remain competitive in today’s mining landscape,” it said.
The Tarkwa mining enclave remains one of Ghana’s most strategic hubs, and E&P’s latest equipment deployment is expected to support increased production capacity and contribute to the sector’s continued growth,” E&P added.
By Ebenezer K. Amponsah