Our attention has been drawn to a number of publications on “how Ghana is losing revenue, as Chinese takes over local positions in the mining sector”.
In those publications, our company, Golden Star Wassa Limited (GSWL), is mentioned and we take the opportunity to debunk the falsehood contained in the publications.
Golden Star Resources (GSR) is a law-abiding external company into lawful mining operations through its 90% owned subsidiary company, Golden Star Wassa Limited (GSWL) incorporated under the laws of Ghana.
- Chifeng Jilong (Chifeng), a mining company that is currently listed on the Shanghai stock exchange, controls GSWL. Chifeng is the largest non-state mining company in China. It is in the process of listing on the Hong Kong and Ghana stock exchanges. Utmost importance and urgency is placed on the processes required to complete these two listings.
- In accordance with Section 43 of the Minerals and Mining Act 2006, Act 703, the Government of Ghana has ten percent free carried interest in GSWL and it is common knowledge that most Large-Scale Mining companies in Ghana that are compliant with the law have 90% interest or shareholding, while the government of Ghana has 10% interest or shareholding. Indeed GSR is not an exception.
- Since its formal acquisition on January 28, 2022 to date, approximately 40 million USD CAPEX investment has been made into GSWL, this includes $9,742,353 million USD invested in equipment (Chifeng). The new controllers have also paid the severance package of all permanent employees to the tune of 34 million USD as promised before the acquisition.
- In order to ease Chifeng, the new owners into the investment made into GSWL as part of an ongoing transition, expansion and investment process, Chifeng is represented by a team who are working closely and cordially with national team members. This is demonstrated in the type of permit the new owners hold in accordance with a plan to transition into a formal structure in line with Minerals and Mining Regulation Act (Local Content and Local Participation) LI2431.
This is common practice and not in breach of any mining laws in Ghana. Furthermore, Ghanaians continue to head the following departments; Health Safety Environment and Community (HSEC), Human Resources (HR), Mining, Metallurgy, Corporate Affairs as well as Legal and Compliance.
- Chifeng has maintained MOUs detailing GSWL’s relationship with its host communities since the acquisition, a position that continues to be demonstrated through ongoing and expanded community-related activities.
- To further demonstrate Chifeng’s compliance with the laws of Ghana, the Wassa mine has had two (2) visits from the Ghana Immigration Service and none of those visits has found GSWL to be in breach of Immigration laws. Furthermore, GSWL continues to engage with its regulators, the Minerals Commission and other regulatory bodies in the discharge of its operations without incident.
- Regarding the expatriate mentioned in the publications, a Canadian of Chinese descent, he came into Ghana through legal channels, just like all expatriates GSWL engages, and has the required permits. At no point has he engaged in illegal mining in Ghana. To conclude, GSWL is a law-abiding corporate citizen owned by the largest non-state mining company in China. In addition, China is one of the biggest trading partners of Ghana.
To attempt to lump GSWL, a large-scale mining company in good standing, as one in breach of Ghanaian laws, and accuse its officers of practicing illegal mining (galamsey) is unfortunate and very misleading.
Especially as such publications have the tendency to incite the general public and other stakeholders against legitimate well-meaning Chinese businesses in Ghana. We entreat all our stakeholders and well-meaning persons to treat such publications with the contempt they deserve.
