FGR Bogoso Prestea’s mining lease revoked

By Kizito CUDJOE

The Minister for Lands and Natural Resources, Samuel Jinapor, has terminated the mining leases of FGR Bogoso Prestea Limited following recommendations from the Minerals Commission and Attorney-General.

The decision, effective September 3, 2024, comes after the company failed to meet specific conditions stipulated by the ministry to continue its operations, according to a statement issued by the ministry.

The termination is pursuant to Article 88 of the Constitution, Sections 5(1), 68(1) and 100(2) of the Minerals and Mining Act, 2006 (Act 703) and regulation 200(1) of the Minerals and Mining (Licencing) Regulations, 2012 (L.I. 2176).

Following this, the minister has directed the Minerals Commission to issue a formal notice of termination to the company, in accordance with regulation 200(4) of L.I. 2176.

This action, it was stated, follows an extensive review of various reports from the Minerals Commission and a Ministerial Committee constituted to evaluate the company’s operations.

Despite a previous notice issued on August 14, 2023 that allowed FGR Bogoso Prestea Limited to remedy breaches of its mining leases, the ministry says the company failed to fulfil its obligations.

FGR Bogoso Prestea Limited sought to raise up to US$150million to pay creditors and restart mining operations.

On April 17, 2024 the Ministry granted conditional approval for the company to restructure and raise the required capital within 120 days, with specific conditions including:

– Commencing the payment of workers’ outstanding salaries within two weeks, with full payment by May 30, 2024.

– Providing evidence of financial resources available to pay creditors and operate the mine within the stipulated timeframe.

– Bringing the mine to full operation within 120 days.

According to the ministry, a report from the Minerals Commission dated August 19, 2024 indicated that the company failed to meet any of these conditions by the August 16, 2024 deadline.

It said following the Minerals Commission’s report, the minister established an independent three-member committee to review the company’s operations. The Committee’s report, submitted on August 29, 2024, corroborated the Minerals Commission’s findings, confirming that FGR Bogoso Prestea Limited did not comply with the required conditions.

It is after consultations with company officials and a thorough review that the minister has terminated the mining leases.

In view of this, the Minerals Commission has been directed to implement measures that prevent any potential negative environmental impacts resulting from the termination – and engage with prospective investors to revitalise the mine and restore economic activities in the area.

The ministry emphasised its commitment to sustainable and transparent management of the country’s natural resources for its citizens’ benefit.

The announcement of this decision comes on the back of some strong concerns from the Ghana Mineworkers Union (GMWU) about the mine’s operations.

GAWU has since been actively protesting the state of affairs at Bogoso Prestea Mine, noting the alleged mismanagement and its impact on workers.

The union had criticised Blue Gold Bogoso Prestea Limited, the purported new owners, for spreading “blatant lies” about the mine’s condition and falsely claiming it was on ‘Care and Maintenance’.

The union alleged that power had been cut from the mine since December 2023 due to the company’s debts exceeding US$25million to Volta River Authority and GRIDCo, rendering the mine non-operational.

The GMWU also questioned the legitimacy of a recent announcement by Blue Gold regarding a strategic partnership with Gerald Group, pointing out inconsistencies and a lack of transparency about the investment’s scale. This scepticism is rooted in a previous failed partnership announcement by FGR Bogoso Prestea with Perception Capital Corp IV, which was supposed to inject US$114.5million into the mine’s operations but it never materialised

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