Mining Leases for FGR Bogoso Prestea Ltd Terminated
Mining leases granted a company by name Future Global Resources (FGR) Bogoso Prestea Mining Limited, has been terminated by the Minister for Lands and Natural Resources, Samuel Abu Jinapor.
This, follows recommendations from the Minerals Commission and the Attorney General and Minister for Justice, Godfred Yeboah Dame, over operations of the company in the Western Region.
It comes at a time of heightened calls on the government to ban small-scale mining, due to pollution of water bodies and destruction of forest reserves across mining communities as a result of activities of illegal mining.
A statement issued yesterday September 18, announcing the termination, said the decision was made after thorough reviews of reports from the Minerals Commission and a Ministerial Committee, tasked with evaluating the company’s operations, in addition to consultations with relevant stakeholders.
The Anchor gathered, FGR was cautioned in August 2023, about some breaches concerning its mining operations and advised by the Commission to correct them.
“It would be recalled that on 14th August, 2023, the Minerals Commission issued a notice to the Company, pursuit to regulation 200(3) of L.I 2176, to remedy breaches of the terms of its Mining Leases. Following the expiration of the said Notice, the Company applied for certain approvals and “No Objections” to raise up to One Hundred and Fifty Million United States Dollars (US$150, 000.000.00) to pay its creditors and bring the mine back to life.
Based on the application and representations of the Company, on 17th April, 2024, the Minister granted the Company Conditional Approval to restructure and raise capital within one hundred and twenty (120) days to pay creditors and operate the Mine, fully.
The Conditional Approval was subject to among others: commencing the payment of outstanding salaries of workers within two (2) weeks, and completing payment by 30th May, 2024; submitting evidence to the satisfaction of the Minister and the Minerals Commission of financial resources available to pay creditors and operate the Mine within one hundred and twenty (120) days…..”
But the Minister said, “A report received from the Minerals Commission on 19th August, 2024, after the expiration of the one hundred and twenty (120) days on 16th August, 2024, demonstrated that none of these Conditions have been met”
The statement indicated that, the “decision to terminate the mining leases was taken after reviewing various reports from the Minerals Commission as well as a Ministerial Committee constituted to review the operations of the Company, and after extensive engagement with all stakeholders involved in this matter.”
The Minerals Commission, has been asked to take steps to forestall any adverse environmental impact that may arise from the termination of the leases.
It has also further been directed to engage with prospective investors to revamp the Mine as soon as practicable to bring back economic activities associated with mining in the area.
Minister Jinapor, added that the government “continues to assure the general 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.”
The decision comes after series of protests and concerns raised by various stakeholders, including the Ghana Mine Workers Union.
Over 400 members of the mine workers union, picketed at the Ministry of Lands and Natural Resources, demanding the termination of FGR Bogoso Prestea’s mining leases.
The union, among other things, cited poor working conditions and the company’s failure to address critical operational issues, including meeting its debt obligations.
But the company, has reacted to the Minister’s announcement of the termination, saying it has not received any such communication.
Blue Gold Bogoso Prestea Mining Limited speaking on behalf of FGR, raised concerns about the termination of the mining leases.
The company in a statement on Wednesday, September 18, the same day the termination was made public, asserted that the reason for the termination, will be strongly disputed.
According to Blue Gold, the mining leases, remain fully valid and the property of the company.
Their reaction follows the Minister’s official statement announcing the termination of the FGR Bogoso Prestea Mining Limited’s lease, based on recommendations of the Minerals Commission and the Attorney-General and Minister for Justice.
“Furthermore, we wish to state that the grounds for any such termination would be strongly disputed by the company, and while any such dispute is ongoing, the mining leases remain fully valid and the property of the company.
“We, therefore, take this opportunity to assure all our workers on site to remain calm and go about their duties as the process of termination of a mining lease is subject to prescribed legal procedures to protect the interests of all stakeholders and ensure that due process is followed,” Blue Gold added.
