Prestea-Bogoso Mine’s future hangs in the balance

The Minerals Commission has said it is yet to receive any formal application from operators of the Prestea-Bogoso Mine, previously operated by Golden Star Resources Limited, to put the mine under care and maintenance.

The mine – currently in the hands of Future Global Resources (FGR) Bogoso Prestea Limited and its principal shareholder Blue International Holdings Limited, United Kingdom – is grappling with operational challenges that led to a temporary halt in mining activities last December.

The mining venture was acquired from Golden Star Resources Bogoso (GSR) in 2020. However, a statement from the Minerals Commission said FGR has made a verbal presentation to the Ministry of Lands and Natural Resources – proposing to place the Prestea-Bogoso Mine under care and maintenance.

It is against this backdrop that the Commission has clarified no formal application or request regarding this matter has been officially submitted to it.

“For the avoidance of doubt, neither the Ministry nor Commission has received a formal application or request from FGR to put the Mine under Care and Maintenance,” the statement read in part.

According to the Commission, the Minerals and Mining Act, 2006 (Act 703) stipulates that any request to suspend production must follow a procedure outlined in section 51. It states that the mining lease holder is required to serve a notice to the Minister, which FGR is yet to do.

The Commission underscored in its statement that any future application will undergo meticulous evaluation in compliance with regulations, taking into account the Mine’s prevailing state and with a final decision being made in the country’s best interests.

Complicating matters, the Commission had previously issued a Notice to FGR in August 2023 prompting them to address identified breaches to prevent termination of the Mining Lease. But with the expiration of this notice in December 2023, the Commission said it is now poised to advise the minister on ensuing steps to be taken.

Despite these challenges, the Commission reassured the public of its steadfast commitment to effective management of the country’s mineral resources. The primary focus remains on safeguarding mining investments, notably the Prestea-Bogoso Mine, to preserve jobs, stimulate the local Prestea economy, foster community development and generate revenue for the people of Ghana.

“The Commission wishes to assure the public of its unflinching commitment to ensuring effective and efficient management of the country’s mineral resources, the protection of mining investment in general and the Prestea Bogoso Mine in particular – to protect jobs, the local Prestea economy and community development, as well as ensure revenue generation for the good people of Ghana’s benefit,” it stated.

These developments come following a series of aggravations and demonstrations in recent times by both employees and some host community members of the Prestea-Bogoso Mine operating area.

The action by employees of the company was to drum home their demands – which the company had earlier in September agreed to honour, according to a memo signed by various Union groups in the company; Bogoso Gold Enterprise Base Union (BGEBEU) and Ghana Mine Workers Union (GMWU).

The host communities’ chiefs and people in a petition also cited a worrying development concerning the growth and operations of FGR Bogoso Prestea Mine.

They allege that since acquisiring the Bogoso Prestea gold mineral asset, over the past three years there has been a general downward performance from management of the mine.

Among other things, the chiefs stated that the situation has greatly affected the indigenous people’s socio-economic and cultural heritage in the Bogoso and Prestea local communities.

The chiefs’ request was for the Sector Ministry to call on FGR to declare their planned financial investment in the mine and the country – which should include its planned corporate social responsibility for the catchment communities.

The divisional chiefs further appealed for the ministry to seek new investors to partner with FGR, or take over operations of the Bogoso Prestea mineral asset for our country and communities’ benefit.

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