The Ghana Mine Workers Union has staged a protest at the Ministry of Lands and Natural Resources together with more than 300 mine workers from the Bogoso Mine.
The Ghana Mine Workers Union demanded the termination of the mining lease of Future Global Resources Ltd. arguing that the company lacks the finances to invest and operate the Bogoso-Prestea gold mine. Their argument stems from the assertion that, throughout the previous three years, Future Global Resources (FGR) has shown a lack of ability to run the mine properly, which has resulted in the dismissal of all employees.
“We want to bring to the attention of the government that FGR has not been able to comply with the dictates of the lease and for that matter, the mining lease should be terminated so that the mine can be put on sale. Since FGR took over the business in 2020 it hasn’t invested anything in the business and clearly, it has brought the business to its knees. Since December mining activity has been at a standstill after the state energy producer cut supply to the mine for nonpayment of bills.”
Abdul-Moomin Gbana, General Secretary GMWU
The situation at the Prestea and Bogoso mines, operated by Future Global Resources (FGR), has been marked by significant challenges. These include unpaid Social Security deductions, outstanding statutory payments, and concerns over the company’s financial capability and management since its takeover in 2020.
Workers, represented by various unions including the Ghana Mine Workers Union (GMWU), have engaged in a sit-down strike to address these issues, leading to a halt in most of the mining company’s operations.
The workers’ demands include full payment of all Tier 1 (SSNIT) and Tier 2 (OPS) arrears, as well as recent welfare arrears from January-July and September 2023. They also demand the payment of the 2nd tranche severance package to all affected employees since the takeover by FGR from Golden Star Resources in 2020.
The GMWU called for the government to make a swift decision about the future of the mine, emphasizing the need for an investor to take over the operations for the benefit of the country and the communities of Bogoso and Prestea.
The union expressed frustration over the delay in action by the ministry despite recommendations from the Minerals Commission and plans to hold a five-day protest targeting the Lands Ministry and Jubilee House, demanding the revocation of the mining lease of FGR.
Government Committed to Secure Workers’ Welfare
The Ministry for Lands and Natural Resources in a press release has assured members of the Mine Workers Union who were picketing at the Ministry of the Government’s commitment to working with all stakeholders to revamp the Prestea and Bogoso mines and secure the welfare of its workers.
This assurance comes amidst broader concerns from traditional leaders and the GMWU about the company’s management and regulation, as well as calls for the government to consider handing over the mine to new investors due to Future Global Resources (FGR)’s demonstrated inability to run the mine effectively.
“… the Company submitted a proposal to restructure the Company and raise 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. After several consultations, the Government believed that if the Company could raise the said capital and inject it into the mine, it would be the most efficient means of revamping it within the shortest possible time.”
Minister of Lands and Natural Resources
The Ministry revealed that the government chose to grant the company “Conditional Approval” to undergo a restructuring and obtain the required funds within a set amount of time. Thus, in a letter dated April 17, 2024, and signed by Hon. Samuel A. Jinapor, MP, Minister of Lands and Natural Resources, the Company was granted one hundred and twenty (120) days to get the necessary funds, revamp the Mine, and guarantee that it runs at maximum efficiency.
The Ministry further stated that the Company has been given two weeks to begin paying all unpaid salaries to employees and to finish the payment of unpaid salaries by May 30, 2024, at the latest.
“As part of the conditions for the approval, the Company is, also, to support the Government’s Community Mining Scheme by relinquishing part of its concessions in Bogoso and Prestea. [This is] to be designated as Community Mining Schemes for the people of these two communities,” the Ministry stated.
The Ministry indicated its commitment to working with all stakeholders to protect the Mine, ensure effective and efficient mining operations in the area, and protect the employment of workers of the Company.
The Ministry has scheduled a fortnightly meeting with the leadership of the Company to track the progress of work towards revamping the Mine. It is confident that, working together with the Company and other stakeholders, the Mine can be revamped within the shortest possible time.
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