Management of Heath Goldfields (HGL) says it would have made far greater progress in developing and upgrading the Bogoso-Prestea Mine, if not for a string of court cases challenging the government’s decision to hand over the mine to the company.
According to the Managing Director (MD) of Heath Goldfields, Mr. Patrick Appiah-Mensah, the company spent the first five months of the year battling legal challenges from Blue Gold FGR, which opposed the government’s decision to transfer the mine lease to Heath.
The MD added that so far, all the cases brought against Heath Goldfields have been dismissed by the courts.
He made this known at a community mining consultative meeting held to brief stakeholders on the company’s operations and progress so far.
Despite the legal setbacks, Mr. Appiah-Mensah disclosed that Heath Goldfields has already invested about USD75 million in preparatory works ahead of production.
The company has also paid a significant portion of the outstanding workers’ salaries, amounting to GHC103 million, as well as the electricity debts left behind by the previous operator, Blue Gold FGR.
In addition, the company has negotiated with the government to settle a $7 million mineral rights rent liability inherited from the former leaseholder.
“These efforts demonstrate our commitment to reviving the mine and making it a model of sustainable mining and development,” the MD emphasised.
Mr. Appiah-Mensah outlined a five-year Phase One Strategy, under which Heath Goldfields plan to invest $205 million in underground mine redevelopment and the establishment of a sulphide processing plant, targeting annual production of 285,000 ounces of gold.
He noted that the immediate focus is on completing the dewatering of the underground mine by the first quarter of next year.
This process involves pumping out about 10 million liters of water daily, accumulated over years of neglect. So far, water levels have been reduced by 75 feet, with refurbishment works nearing completion.
Heath Goldfields is not only 90% Ghanaian-owned, but also 100% Ghanaian-managed, and it is fully committed to sustainable development.
We are here to upgrade the mine and enrich lives through responsible mining,” he said, adding that recommissioning of the processing plant and commencement of open-pit operations are on course.
“By having Ghanaian ownership and Ghanaian management and leadership, we’re giving practical meaning to President Mahama’s vision of deepening local content and local participation in the country’s mining sector.”
Mr. Appiah-Mensah also dismissed speculations that Heath Goldfields was behind the woes of Blue Gold FGR, which lost the mine lease.
“If you recall, the Government issued a public statement detailing the process leading to the termination of the company’s mineral rights.
“Those saying so should go back and read that press release again. How can we be blamed for that? If all were going well, the mine would not have been handed over to us,” he said, adding “we are not behind their troubles”.
Community Endorsement
The Divisional Chief of Prestea Himan, Nana Nteboa Pra V, commended Heath Goldfields for the progress made so far and expressed optimism about the mine’s revival.
“The mine has come a long way, and the time to develop and upgrade it is now. We have sacrificed a lot for this mine and deserve to see tangible benefits,” he said.
Nana Nteboa assured the company of the chiefs’ and community’s full support, noting that the revival of the mine presents renewed hope for Prestea and its people.
During a tour of the company’s facilities, the chief praised Heath Goldfields’ visible progress, saying “Within this short period, they are really working hard to bring the mine back to life. If all goes well, there’s a bright future for us—unlike in past years.”
Addressing ongoing ownership disputes, he expressed confidence that due process was followed in transferring the lease from Future Global Resources (FGR) and Blue Gold FGR to Heath.
“If they believe they have a case, they can pursue it in court. But as a community, we are focused on a company that prioritises sustainable development. We are not interested in litigation,” he stated.
The chief concluded by noting that while previous operators failed to deliver any meaningful community initiatives, Heath Goldfields has already shown commitment to local development.
“Opportunity was given to them for three years, yet nothing was done for the community. Heath has come in, and we can already see progress. The government did the right thing,” he said.
