In a significant move, the Minister for Lands and Natural Resources, Samuel Abu Jinapor, has terminated the mining leases granted to FGR Bogoso Prestea Limited, citing the company’s failure to meet conditions set by the government.
This decision follows a series of events that began in August 2023, when the Minerals Commission issued a notice to the company to remedy breaches of its mining leases.
FGR Bogoso Prestea Limited acquired the Bogoso-Prestea Gold Mine from Golden Star Resources in 2020.
However, the company’s operations have been plagued by financial difficulties, prompting concerns from the Ghana Mine Workers Union.
In April 2024, the Minister granted the company conditional approval to restructure and raise capital, but FGR failed to meet the set conditions.
Conditions Not Met
The conditions included paying outstanding salaries to workers, submitting evidence of financial resources, and bringing the mine to full operation within 120 days.
A report from the Minerals Commission in August 2024 revealed that none of these conditions had been met.
A subsequent review by a three-member independent committee confirmed the company’s failure.
Government’s Next Steps
However, the Minerals Commission has been directed to take measures to prevent negative environmental impacts and engage with prospective investors to revamp the mine.
The Ministry of Lands and Natural Resources reassures the public of its commitment to efficient and sustainable natural resource management.
Reactions from Stakeholders
The Ghana Mine Workers Union had been advocating for the termination of FGR’s lease, citing the company’s lack of finances to invest and operate the mine.
The union had planned to picket at the Jubilee House and present a petition to President Akufo-Addo.
With the government’s decision, the union’s concerns have been addressed.
-BY Daniel Bampoe