…Declare support for British company
The Minerals Commission, has appointed a six-member caretaker team, including some dismissed workers of the Future Global Resources’ (FGR) Bogoso and Prestea mines to assist the regional manager of the commission in overseeing operations of concession, following what it says was a termination of the company’s mining leases, but which insiders have maintained was rather a coup.
The development, comes as a group calling itself “the Concerned Workers’ Union of Bogoso Prestea Mines”, numbering over 200, has issued a statement, saying they “strongly oppose the actions” of “current union leaders regarding the re-opening of the mine”.
The Board Chairperson of the Mineral Commission, Barbara Oteng Gyasi, and Chief Executive Officer (CEO), Martin Ayisi, are facing accusations of setting Ghana up for another international legal battle over perceived hostile business practices in the termination of the FGR Bogoso and Prestea mines lease, with the controversy threatening investor confidence in the country’s mining sector.
According to the Concerned Workers’ Union of Bogoso Prestea Mines, the instance of current union leaders, “that the government should abrogate the mining lease of the current owners and give it to a new, unknown entity is disingenuous and unpatriotic”.
They argued that, “we believe our union leaders’ stance is self-serving and unreasonable, driven by a desire to conceal their own wrongdoing”.
They stated, “Some union leaders have acted illegally by selling company property, Evidence suggests that union leaders clandestinely flooded the mine’s underground tunnels to prevent its reopening”.
“Certain union members and management have colluded with an outside “investor” to frustrate FGR/Blue Gold’s legally acquired mining leases, Political machinations involving mother union leaders aim to discredit the current government”, adding “Our leaders prioritize personal gain over the collective well-being of workers and the community”.
“The community overwhelmingly supports the mine’s reopening, as evident from local discussions and radio programs. We question our leaders’ refusal to engage with mine management despite repeated attempts.
“What do they stand to lose from the mine’s resumption?
“We, the Concerned Workers, disassociate ourselves from this standoff. Our priority is putting food on the table for our families”.
“We call on FGR/Blue Gold to engage with willing workers to restart the mine. Under current conditions, we cannot afford to wait for another investor. Our message is clear: We will no longer be used to serve individual interests. Let us work together to revive the mine and restore livelihoods”.
The Ministry of Lands and Natural Resources on Wednesday, September 18, 2024, terminated the lease of the FGR citing the findings and recommendations from various reports by the Minerals Commission and a Ministerial Committee that reviewed the company’s operations.
The decision came after extensive engagement with all stakeholders, including aggrieved workers of the British company.
Lands Minister Samuel Abu Jinapor, in the termination announcement, revealed that the previous operators were cautioned in August 2023 for multiple breaches related to their mining activities. Despite advisories from the Minerals Commission to rectify the issues, the company failed to comply.
However, Blue Gold Bogoso Prestea Limited, which claims to be the new operator of the mines, has contested the government’s decision, asserting that its operations are legal and that it will challenge the termination notice.
In a notice, Chief Executive Officer (CEO) of the Minerals Commission, Martin Ayisi, stated that the newly appointed caretaker team will, “oversee the day-to-day affairs of the mine site effective immediately.”
It said, “Please take note that following the termination of the mining leases of FGR Bogoso Prestea Limited, the Mineral Rights covering the Bogoso-Prestea Mine, have reversed to the State”.
“Consequently, the Minerals Commission which is responsible for the regulation of the mining industry as well as the management and utilization of the mineral resources of the state is now responsible for managing the Bogoso-Prestea Mine until a new investor is found.
“Therefore, you are hereby appointed to oversee the day-to-day affairs of the mine site, effective immediately. You will be assisted by the following senior officers and representatives of the workers union of the mine: Senior Officers Mr Emmanuel Dadzie, Mr Abdul Malik Nuhu Billa and Mr Samuel Mireku.
Representatives of workers union who signed the statement are; Mr Mac Donald Kitsin-Hytey, Mr Enoch Kelly Kwofie, Mr Ben Bright Caiquo.
“Please, further take note that the Military shall remain at the mine site to secure the assets of the mine. The head of the military shall work with you and the above-named senior officers and representatives of the workers union of the mine to provide security at the mine.
The Herald’s contacts at the Ministry of Lands and Natural Resources, had revealed that Martin Ayisi, and its board chair, Barbara Oteng Gyasi—who is also the former Member of Parliament (MP) for Prestea Huni-Valley—have made decisions exceeding their regulatory roles. These actions have reportedly alarmed foreign mining companies operating in Ghana.
This decision, reportedly endorsed by the Minister of Lands and Natural Resources, Samuel Abu Jinapor, was announced via a press release on September 18, 2024, with the ministry, explaining that the move followed recommendations from the Minerals Commission and the Attorney-General’s office.
But The Herald’s information is that, ahead of the purported termination, both the Minerals Commission boss and the chairperson, made separate statements at various places, suggesting that FGR Bogoso Prestea Mining Limited being operated by a British company called Blue Gold Bogoso Prestea Limited, is to be taken over, irrespective of the huge investment the new owners have made into the mine concession based in the Western Region.
Barbara Oteng Gyasi and Martin Ayisi’s separate actions, including public pronouncements have undermined the operations of FGR.
They have emboldened local chiefs and the Ghana Mine Workers Union into a dispute with the company, mounting pressure over the mine’s inactivity, which has severely impacted the local economy.
The union staged a protest in April 2024, demanding the government intervene to resolve the deadlock and protect workers’ livelihoods.
Barbara Oteng Gyasi, a former Minister of Tourism, Arts & Culture, who is seeking re-election in her constituency after her 2020 defeat to Robert Wisdom Cudjoe, had been on a local radio station, saying she was working in the interest of her people, to take over the mine, citing her position at the Minerals Commission, while Martin Ayisi, was reportedly spotted in South Africa, desperately trying to sell the same mine to other companies during a mining programme.
Locally, Martin Ayisi, has also been meeting some selected workers of Blue Gold, in his private residence, as well as his office, towards having them run the company, when the British management and owners are kicked out.
This is to pave the way for his preferred company, to take over the ownership of the concession. Indeed, three staff of Blue Gold namely; Emmanuel Dadzie, Abdul Malik, Nuhu Billa and Samuel Mireku, who were fired recently, have since been appointed by Martin Ayisi, as part of an interim committee he established to run the concession.
Based on the separate meetings between the Mineral Commission boss and Barbara Oteng Gyasi, and sections of the workers, most of them have refused to work, making it impossible for Blue Gold to meet its financial obligations to them, the state, utility service providers, including the Volta River Authority (VRA).
Blue Gold, bought the mine concession in 2020, from Golden Star Resources during the hard times of the COVID-19 pandemic and has been seeking partnerships and investments to run the mines.
Even though, clearly conflicted as a native and former MP for the area, Barbara Oteng Gyasi, sees her political fortunes in the desperate financial situation of Blue Gold, and has been capitalizing on agitations by some workers and some traditional rulers, about a delayed negotiated severance package payments, Social Security and National Insurance Trust (SSNIT) contributions, salaries, Christmas bonuses, tax obligations, amongst others.
In January 2024, Barbara Oteng Gyasi, told a local radio station, Asomdwe 102.1 FM, that the company’s failure to meet its investment obligations was being addressed, and efforts were underway to find a new investor.
“We are looking for an investor with financial muscles and technical expertise to take over the mine,” she said.
However, the sudden termination decision, has surprised many in the industry, particularly since legal procedures require a formal 30-day notice period.
Reports are that, the concession is being prepared to be handed over to some Chinese nationals for Galamsey in the coming days.
She had told Asomdwe 102.1 FM a Bogoso-based radio station; “I am from Prestea Huni-Valley, the company is in Prestea Huni-Valley, so if people are worried, I need to come in and assure them.
“Let’s just say that, the bottom line is Finance. Golden Star Resources, was a holder of the concession, it got to some time and they decided to stop the work, but because they were in charge of the concession, once they had the license, they looked for people who they could assign their interest.
“They were having a mining lease and decided to assign their interest in the lease to another company. If you want to do that, there should be a negotiation between you and the company and the reached agreement must be furnished to the Minerals Commission, for the Minerals Commission to look into, and accept, before they will approve for you to sign and hand over the lease to the other company.
“Then the company will come and replace you, meaning you can’t operate at the concession again and the one who took over, will operate. So when Golden Star, decided to stop the work, they and Future Global Resources, made an agreement and the commission accepted for Future Global to take over the work. When they started the work, going forward, they experienced some challenges. They were able to invest the amount of money they were supposed to invest in the business for the business to grow.
“So we brought before them their objectives and they gave assurances that there have been some hurdles preventing them from achieving their goals, and they are still working on it. So we monitored and realized that, where it was going was extremely high. The company is even operating at a loss. Under our rules, the agreement you made with the company; if you can’t go by it, you need to write a letter and ask the company to show cause; why can’t the company cancel the mining lease?
“So we looked at the assurances they gave to us, and realized it has failed, we wrote to them to show cause. Writing to them, the law states the time period of notice to show cause. So we gave them notice to show cause; why they couldn’t cancel the mining lease, because they couldn’t achieve their purpose. We waited towards the end of the notice period and the response they gave to us; we weren’t pleased with their response.
“So, we as an agency of the ministry, had a conversation on it, with our minister, stating that, how things are going, we need to get another people to come and help the man and we think that will be better for the country Ghana.
“So if possible, we look for a new investor. And he said okay, if that is the case, let’s work towards it and look for those who are interested and will bring proposals. Truly, people have brought proposals and we are looking into it. when we look into and realize the person who has financial muscles, as I have said, the issue is about financing, So if we see that this person has the financial muscles and technical knowhow and has a good reputation in the mining industry, of which I believe that when the work is giving to them, they can do, do it better and upgrade it, then we recommend the person to the minister.
“If the Minister also speaks with the government and he accepts, then we will cancel the lease and give it to the new person. Currently, that is where we are; even yesterday we had a conversation on it with the minister and we were told that by Monday, the minister must receive that recommendation. So FGR matters that we’re talking about, the long and its short is that Future Global Resources that we gave the mines to, investment that must go into the mines to grow it, they couldn’t perform their duty. So the government, have realized that something needs to be done about it. So we have taken the legal steps.
She explained, “We haven’t actually. We have given them a notice and the notice has expired, they couldn’t give any reasonable response. So for now, what is left for us, is to issue a cancellation letter to the company. We haven’t issued the cancellation letter, because we want to identify someone who will represent them. Even if that will take time, we can issue and form an interim committee for the company for a period that the new investor takes over. So we are looking at all those issues and regulatory matters.
“This has been a regulatory matter and we don’t want to bring all the details out into the public, but it looks like, I am from Prestea-Huni Valley and the company is also at Prestea-Huni Valley, so if the people are worried, I need to assure them.
I think, about two weeks ago, I came to the company with management and the union to have some conversations and assured them that, we know where the matter has gotten to, where workers have been asked to go home for holidays as at the 15th.
I think even their December salary, some emoluments and Christmas bonus were not given to them. I know that there is been tension, so being a native of Prestea Huni Valley, I have to come and have conversations with them and tell them what the government is doing to help them, calm them down, and to let them know that the government knows where the matter has gotten to, and what must be done to bring the company back to business.
What’s strange is that ,both Barbara Oteng Gyasi and Martin Ayisi, are lawyers. Industry players had expected them to respect a 30-day notice of a takeover agreement, but this was not the case in the matter of the FGR Bogoso Prestea Mining Limited.
The Herald, is also informed of a crucial meeting between Martin Ayisi and an agent of the Blue Gold at Peduase Valley Resort near Aburi in the Eastern Region, where it was explained to him about steps that the company had taken to address its financial issues, and it, therefore came as a surprise that he and the board chairperson, engineered the termination.
The Herald, has since sighted a response from Blue Gold Bogoso Prestea Limited, refuting reports of the termination of the mining leases of FGR Bogoso Prestea Limited by the Ministry, as of September 3, 2024.
Blue Gold Bogoso Prestea Limited, in the statement, mentioned that the company, has not received any communication regarding the said termination, and emphasised that the mining leases remain fully valid and are the property of the company.
It also assured 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 interests of all stakeholders and ensure that due process is followed.”
FGR owned 90 per cent of the project, with the Government of Ghana, holding the remaining 10 per cent interest.
The Bogoso-Prestea mine, has a proud history dating back to 1912, during which time it has produced over 9 million ounces of gold.
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 a strategic partnership with a US$8 billion turnover, Gerald Group, has taken over from FGR.
A statement to that effect was earlier issued by Blue Gold. The company is reported to have gone far with an arrangement for some US$100 million capital to run the mine, but the ministry statement is about scuttling the investment.
