Govt Poised To Revamp Prestea Mine

Samuel Abdulai Jinapor

 

Minister of Lands and Natural Resources, Samuel Abdulai Jinapor, has given assurance that the government will work to revamp the Prestea Mine which is now owned by Future Global Resources (FGR).

According to him, the revamp is to secure the employment of the company’s workers.

He stated that on July 26, 2020, Golden Star reached an agreement with Future Global Resources (FGR) to sell all of its shares in the company to FGR, subject to regulatory approval.

“Golden Star (Bogoso/Prestea) Limited was the holder of mining leases in and around Prestea and Bogoso, with some of the leases dating back to 2001,” he said, while answering questions on the floor of Parliament.

Mr. Jinapor indicated that based on the Minerals Commission’s recommendations, the then-Minister, Kwaku Asomah-Cheremeh, issued a ‘No Objection’ on September 30, 2020, in accordance with Section 52 of the Minerals and Mining Act, 2006 (Act 703), allowing FGR to acquire Golden Star’s interest in the mine.

“That same day, FGR became the owner of the Prestea/Bogoso Mine. By the said takeover, FGR assumed all the rights and liabilities of Golden Star (Bogoso/Prestea) Limited,” he added.

The minister explained that the terms of the takeover agreement are essentially made up of obligations, covenants, representations, warranties, and guarantees between the parties that led to the closure of the agreement, including payment terms, document delivery, and FGR taking possession of the mine.

He stated, however, that as part of the request for a ‘No Objection’, FGR submitted a Funding Proposal in which the company is committed to injecting capital to develop and expand the mine, with a focus on extending the existing underground mine, assessing the potential for additional discoveries, and exploitation of sulphide resources.

“Mr. Speaker, the Company has, however, not been able to inject the requisite capital, and the operations of the mine have come to a halt due to a disconnection of power to the mine,” he said.

“The Ministry is working with all relevant stakeholders to ensure that the mine is revamped as soon as possible,” he stressed.

He added, “I want to assure the Hon. Member for Prestea-Huni Valley, the Chiefs and people of the area, and this august House that just as we did with the Obuasi Mine, which was put under care and maintenance, and the Bibiani Mine, which had been dormant for seven (7) years, Government will work to revamp the Prestea Mine, and secure the employment of its workers.”

 

By Ernest Kofi Adu, Parliament House

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