Dr. Steve Manteaw has confirmed that Engineers & Planners Limited and its subsidiary, Damang Gold Mine Limited, legally can sell gold from the Damang concession. He stated their operations are well-grounded in Ghana’s mining law, despite ongoing debate about parliamentary ratification. This position counters claims that gold from the concession belongs to the state until parliamentary approval.
Manteaw, a minerals governance expert, intervened after policy analyst Bright Simons questioned the legality of E&P selling gold without parliamentary ratification. Simons initially argued that the gold remained state property until formal legislative approval. Dr. Manteaw acknowledged the legitimacy of these questions but insisted they needed analysis within Ghana’s specific legal and historical mining context.
This discussion about Damang’s gold sales fits into a broader national conversation around indigenous participation in the extractive sector. It highlights issues of regulatory stability, due process, and local control. Ghana aims to increase its share and oversight in the lucrative mining industry, making such clarifications about legal frameworks critical for investors and the public. The government chose not to renew Gold Fields' lease for Damang, leading to E&P's involvement and increasing scrutiny of the transition process.
Dr. Manteaw, a former Chairman of the Public Interest and Accountability Committee, clarified specific legal points. He noted that neither the 1992 Constitution nor the Minerals and Mining Act, 2006 (Act 703) provides a specific deadline for parliamentary ratification. This means ratification is not a prerequisite for commencing operations. He further argued that the Executive and Parliament bear the responsibility for obtaining ratification, not the company holding the mineral right.
His central argument relies on Section 13 of Act 703, which details the procedure for granting mineral rights. Dr. Manteaw stated that once key steps are followed, including Minerals Commission recommendation, ministerial notification, applicant acceptance, and formal grant, the holder can enter the land. He confirmed that Damang Gold Mine Limited completed every step in Section 13, making their presence and operations legally sound.
Manteaw also cited historical precedent. He explained that many large-scale mining companies, including foreign-owned firms, operated for years without parliamentary ratification. These companies continued to mine and export gold without legal challenge to their sales. He referenced a 2019 case where two Members of Parliament sued the Attorney-General and 35 mining companies for operating without ratified leases. The government did not sanction these companies or demand a refund of gold proceeds. Instead, Parliament moved to ratify the leases to regularise the operations.
Applying a different standard to an indigenous Ghanaian company would be inconsistent and unfair, according to Dr. Manteaw. He also addressed concerns about state revenue. He confirmed that proceeds from the Damang gold sales remain in Ghana. This allows for reconciliation once parliamentary ratification determines the state’s applicable share. The Ghana Extractive Industries Transparency Initiative (GHEITI) will monitor this matter in its annual reporting, ensuring public accountability.
Furthermore, Dr. Manteaw revealed that E&P and Damang Gold Mine Limited have covered worker salaries and operational expenses since April 18, 2023. These payments continued even before the first gold sale from the mine. This demonstrates the company's commitment to continuous operation and its financial responsibilities within the concession.
This legal interpretation fundamentally shifts the Damang debate from political speculation to a clear legal discussion. It underscores the importance of the legal framework in ensuring operational continuity in Ghana's mining sector. The situation where a mine could face closure, workers could lose jobs, and production could halt due to an absence of specific ratification timelines is a significant concern. Dr. Manteaw's stance is that Ghana’s legal system has historically allowed ongoing operations under such circumstances, pending formal ratification.