Adecision by the Minister for Lands and Natural Resources (MLNR), Samuel Abu Jinapor, to terminate a mining lease granted Future Gold Resources (FGR) Bogoso Prestea mine is
causing fear and panic in the area. This is because FGR is a now a defunct company following acquisition of the mine lease in May 2023 by a new Investor, Blue Gold Bogoso Prestea.
Following the press statement signed by the MLNR Public Relations Unit, announcing the termination of FGR lease, Blue Gold has also issued what could be described as a counter statement assuring its workers to stay calm and that no one has terminated its lease.
In a statement dated Wednesday September 18, 2024 and signed by Kwabena Boahene
Asamoah, Communications Head for Blue Gold, he wrote “The attention of Blue Gold has been drawn to a press statement from the MLNR today, Wednesday September 18, 2024 in which it states that the sector Minister has terminated the mining lease of FGR Bogoso Prestea Mines on 3rd September 2024”.
The statement continued that no such statement has been received by Blue Gold Company. Furthermore, the Blue Gold statement assured that grounds for any such termination would be strongly disputed by the company and while any such dispute was ongoing, the mining lease remains 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 interest of all stakeholders and ensure that due process is followed”.
Blue Gold, in strategic partnership with $8 billion turnover, Gerald Group has taken over from FGR. A statement to that effect was earlier issued by Blue Gold. However, a decision by the MLNR announcing termination of defunct FGR has sent shivers down the spine of workers of Blue Gold given the fact that, the later had acquired defunct FGR.
But in the MLNR statement signed by the PRO, it indicated that the Minister took the decision based on sound advice. Below is the full statement issued by the Lands and Natural Resources Ministry;
THE MINISTER FOR LANDS AND
NATURAL RESOURCES TERMINATES
FGR BOGOSO PRESTEA LIMITED MINING
LEASES
1. The Minister responsible for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP, acting on the advice and recommendation of the Minerals Commission and the Attorney-General, 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 (Licensing) Regulations, 2012 (L.I. 2176), has terminated the mining leases granted to FGR
Bogoso Prestea Limited (the Company, and directed the Minerals Commission to issue a
notice of termination to the Company, in accordance with regulation 200(4) of L.I. 2176.
2. 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.
3. It would be recalled that on 14th August, 2023 the Minerals Commission issued a notice to the Company, pursuant to regulation 200(3) of L.I. 2176, to remedy breaches of the terms of its Mining Leases.
4. 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.
5. 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;
a. commencing the payment of outstanding salaries of workers within two (2) weeks
and completing payment by 30th May, 2024;
b. 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 and
c. bringing the mine to full operation within one hundred and twenty (120) days.
6. 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 demonstrates
that none of these conditions have been met.
7. Subsequent to the Report of the Minerals Commission, the Hon. Minister constituted a three-Member independent Committee to review the operations of the Company and
make recommendations.
8. The Report of the three-Member Committee, submitted on 29th August, 2024, confirms
the Report of the Minerals Commission that the Company has failed to meet the above conditions.
9. Based on the above reports, and on the advice and recommendation of the Minerals
Commission and the Attorney-General, the Hon. Minister, after engaging with officials of the Company, the Ministry and the Minerals Commission terminated the Mining Leases of the Company on Tuesday, 3rd September, 2024.
10. The Minerals Commission has been directed to take measures to forestall any negative
environmental impact that may arise from the termination of the leases.
11. The Minerals Commission has, 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.
12. The Ministry of Lands and Natural Resources, under the distinguished leadership
of President Akufo-Addo, 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.
