The Ghana Mine workers’ Union, has responded firmly to claims made by FGR/Blue Gold Bogoso Prestea Limited in a recent article published in the Herald Newspaper on September 27, 2024.
These claims arose, following the Ghanaian government’s decision on September 18, 2024, to terminate the mining leases held by FGR/Blue Gold.
As the representative body for the workers at the Bogoso-Prestea Mine, the Union, asserts that the lease termination is not a coup, as suggested, but a necessary action taken in compliance with Ghanaian law.
It said the company, has received unprecedented opportunities to rectify breaches, including two separate 120-day notices to address serious issues such as unpaid wages, health and safety risks, and insufficient capital for operations but failed to comply.
The first notice was issued in August 2023, due to the company’s significant debts to employees, regulatory authorities, and contractors.
When the deadline passed in December 2023, FGR/Blue Gold, failed to make necessary improvements, resulting in power cuts from the Volta River Authority and GRIDCo due to their outstanding debts.
The situation further deteriorated between January and April 2024, prompting the Minister of Lands and Natural Resources, to issue a Conditional Approval on April 17, 2024, giving FGR/Blue Gold another chance to rectify the situation within 120 days. This included demands to pay outstanding salaries and demonstrate financial capability.
Despite these opportunities, FGR/Blue Gold did not meet any of the conditions set forth in the Conditional Approval. The Union questions how the termination of the leases could be considered a coup when it was supported by thorough evaluations and warnings over an extended period.
The Union also criticized FGR/Blue Gold’s claim regarding a group called the “Concerned Workers’ Union of Bogoso-Prestea Mines,” asserting that no such group exists. Instead, the workers have been without pay since December 2023, struggling to support their families while FGR/Blue Gold attempts to manipulate public perception and cast doubt on the integrity of the Minister and the Minerals Commission.
Furthermore, the Ghana Mineworkers’ Union, clarified that their leadership has been transparent and actively engaged with the Minerals Commission throughout this crisis, aiming to safeguard the interests of their members and the community.
The Union believes the lease termination is not only timely but will ultimately revitalize the Bogoso-Prestea Mine and benefit workers and the local communities.
The Ghana Mineworkers’ Union, stands firmly against the claims made by FGR/Blue Gold Bogoso Prestea Limited and is committed to advocating for the rights and well-being of the workers at the Bogoso-Prestea Mine.
Below is the rejoinder sent The Herald dated September 30, 2024 and titled Re: Over 200 workers vow to resist Minerals Commission’s coup at Bogoso Prestea Mines
The attention of the Ghana Mineworkers’ Union has been drawn to some misleading news authored by FGR/Blue Gold Bogoso Prestea Limited and published in the Herald Newspaper of September 27, 2024 following the decision of the Government of Ghana to terminate the Mining leases held by FGR/Blue Gold Bogoso Prestea Limited on September 18, 2024.
As the trade union representing the workers of the Bogoso-Prestea Mine, we want to place on record that the decision to terminate these Leases was not an act of coup as is being peddled. In reaching this decision, all the relevant laws of Ghana were fully complied with.
Astonishingly, FGR/Blue Gold Bogoso Prestea Limited is so far the first and only mine in the history of this country to have been given two (2) separate Notices of 120 days each to Remedy the same breaches.
In August 2023, the first Notice to Remedy Breach was issued to the FGR/Blue Gold Bogoso Prestea Limited to remedy breaches ranging from indebtedness to its employees, regulatory bodies and contractors, serious health and safety risks, and the lack of capital to invest into the mine. Interestingly, after the expiration of the first notice in December 2023, FGR/Blue Gold Bogoso Prestea Limited failed to remedy the situation, and things got worse.
Power on the Mine site was taken off by VRA and GRIDCo in December 2023 due to the escalating debt owed to these power producers.
Between January 2024 and April 2024, the mine was left to deteriorate by FGR/Blue Gold. Even though it was very evident that FGR/Blue Gold Bogoso Prestea Limited could not operate the Mine, on April 17, 2024, the Minister of Lands and Natural Resources issued a Conditional Approval giving FGR/Blue Gold Bogoso Prestea Limited yet another 120 days’ notice to comply with the following terms and conditions.
i. That by a letter dated 17th April 2024 and signed by the Minister for Lands and Natural Resources, the Company was given one hundred and twenty (120) days to raise the capital, revamp the Mine and ensure that it operates to full capacity.
ii. That the Company has been given two weeks to commence the payment of all outstanding salaries owed to workers, and to complete the payment of outstanding salaries not later than 30th May 2024.
iii. The Company is to submit evidence, to the satisfaction of the Minister and the Minerals Commission, of financial resources available to pay creditors and operate the Mine, within the said one hundred and twenty (120) days, and to ensure the Mine is fully operational before the expiration of the said one hundred and twenty (120) days.
iv. The Minister’s letter specifically states that “should the Company fail to meet any of the above conditions, the Conditional Approval given shall be deemed revoked, and the Mining Leases terminated without further recourse to the Company.
Astonishingly, at the end of the 120 days, none of these conditions had been fulfilled. How can we now be told that the decision of the Minister to terminate the Leases, is an act of coup, which threatens investor confidence in the mining sector. In which country in the world, will workers, the community, regulators, the government and citizens, tolerate and endure for over three years whiles the country’s resource (gold) is held hostage by any entity, be it foreign or local.
The question every reader should ask FGR/Blue Gold Bogoso Prestea Limited is, when the Minister for Lands and Natural Resources decided against the wishes of workers and the inhabitants of the Bogoso-Prestea communities who converged to picket/demonstrate at the Ministry of Lands and Natural Resources, did FGR think there was massive rot at the Commission or the Ministry of Lands and Natural Resources then? Again, when the Minister of Lands and Natural Resources decided to issue the Conditional Approval to FGR/Blue Gold Bogoso Prestea Limited for an additional 120 days even when the Attorney General of Ghana and officials of the Minerals Commission advised otherwise, did FGR think there was massive rot at the Commission or by the Minister then?
Now about the so-called group FGR/Blue Gold Bogoso Prestea Limited calls the “Concerned Workers’ Union of Bogoso-Prestea Mines, the Ghana Mineworkers’ Union would like to place on record that, there is absolutely no group called “the Concerned Workers’ Union of Bogoso Prestea Mines”.
Is it not quite surprising that the news report could not mention or refer to even one member of this group in its reportage? Simply put, there is no such group called the “Concerned Workers Union of Bogoso-Prestea Mine. It is a complete fabrication by FGR/Blue Gold Bogoso Prestea Limited and should be treated with the utmost contempt it deserves.
For your information, workers have been home since December 2023, with no salary. Their livelihoods have been cut off by the very actions of FGR/Blue Gold, and today we are being told by the same FGR/Blue Gold Bogoso Prestea Limited that these workers have vowed to resist the termination.
How logical and sound is this? As stated earlier, this is part of FGR/Blue Gold Bogoso Prestea Limited’s tactic to court public sympathy, tarnish the image of the Minister, the Minerals Commission and the Government in order to satisfy the selfish interest of a few individuals.
How can same workers who have embarked on several demonstrations, from January 2024 till the date of the termination of these leases, turn around to resist the same things they fought for?
It is interesting that FGR/Blue Gold Bogoso Prestea Limited brought the personalities of both the Site Union Leaders and the National Union into the publication. Well, we have decided not to do same from the FGR/Blue Gold Bogoso Prestea Limited side, at least for now.
We, however, want to state clearly for the records that, the site Union leaders or the National Union (GMWU) have not been engaging in secret meetings with any official of the Minerals Commission.
As, every vibrant, proactive trade union leader is required to do in crises such as the one FGR/Blue Gold Bogoso Prestea Limited put everybody through, both the Site and National Union Leadership had to seek answers and call on the state for support. This, the Union did, with the absolute support of its members right from January 2024 up until date.
Indeed, the Union’s engagements with the Minerals Commission did not only lead to the restoration of power to the Underground Mine and some critical installations without which things would have deteriorated further, but the Union’s efforts also resulted in the ramping up of security on the mine as illegal miners and intruders were gradually taking over the mine.
All these meetings were not held in camera or secrecy; they were held in the open and in the utmost interest of our members and the Bogoso-Prestea Mine. In fact, it is the reason why pictures were taken of some of these meetings and made public. The question therefore is, who poses for pictures in a secret meeting?
The Union is totally convinced that the termination of the leases by the Minerals Commission is not only timely but also in the right direction and would bring fresh impetus to the Bogoso-Prestea Mine, and ultimately inure to the benefit of workers, the Bogoso-Prestea communities and the nation at large.
