The Minister of Lands and Natural Resources, Mr Samuel Abu Jinapor, on April 25, engaged members of the Mine Workers Union who picketed at the Ministry to demand the revitalisation of the Prestea/Bogoso Mines.
The Minister assured them of government’s commitment to working with all stakeholders to revamp the Prestea/ Bogoso Mines and secure the welfare of its workers.
This was in a statement issued by the Public Relations Unit of the Ministry, and copied to the Ghana News Agency in Accra, on Thursday.
The Prestea/Bogoso Mines were acquired by Future Global Resources (FGR) in October 2020, from Golden Star Resources.
Due to some financial challenges, operations at the Mine came to a halt in December 2023, with the Company also indebted to its workers in unpaid salaries.
The Ministry and the Minerals Commission have since been working with the Company and other stakeholders to pay all debts and rejuvenate the Mine.
In January 2024, the Company submitted a proposal to restructure the Company, and raise up to US$150 million to pay its creditors and bring the Mine back to life.
After several consultations, the Government thought that if the Company can raise the capital and inject it into the mine, it will be the most efficient way of revamping the Mine in the shortest possible time.
The Government, therefore, took the decision to give the Company “Conditional Approval” to raise the needed capital with strict timelines and restructure its operations.
Accordingly, by a letter dated 17th April 2024 and signed by the Minister of Lands and Natural Resources Samuel Abu Jinapor, it was given 120 days to raise capital to revamp the Mine and ensure it operates to full capacity.
Additionally, the Company was given two weeks to commence payment of all outstanding salaries owed to workers, and to complete the payment of outstanding salaries not later than May 30, 2024.
The Company is to submit evidence to the satisfaction of the Minister and the Minerals Commission of financial resources available to pay creditors and operate the Mine within 120 days.
And to ensure that the Mine is fully operational before the expiration of the ultimatum.
As part of the conditions for the approval, the Company is to support Government’s Community Mining Scheme by relinquishing part of its concessions in Bogoso and Prestea to be designated as Community Mining Schemes for the people of these two communities.
The Minister’s letter specifically states that “should the Company fail to meet any of the above conditions, the Conditional Approval given shall be deemed revoked, and the Mining Leases terminated, without further recourse to the Company”.
The Ministry has taken note of a memo issued by the Company to its employees, dated 24th April 2024, giving notice of the immediate payment of December and January salaries, and to complete the payment of all outstanding salaries by 30ht May, 2024, in accordance with the Conditional Approval.
The Ministry is fully committed to working with all stakeholders to protect the Mine, ensure effective and efficient mining operations in the area, and protect the employment of workers of the Company.
The Ministry has, therefore, scheduled a fortnightly meeting with the leadership of the Company to track progress of work towards revamping the Mine.
The Ministry is confident that, working together with the Company and other stakeholders, the Mine can be revamped within the shortest possible time.
The Ministry called on all stakeholders to lend the needed support to Government and the Company to revamp the mine, protect the employment of the workers, and the livelihoods of those who depend on the mining operations.
The Ministry of Lands and Natural Resources, under the distinguished leadership of President Akufo-Addo, continues to assure the public of its unflinching commitment to the efficient, effective, and sustainable exploitation and management of the natural resources of our country, in the spirit of transparency, anchored on integrity and utmost good faith, for the benefit of the Ghanaian people.
GNA
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