The Minister responsible for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP, has officially terminated the mining leases granted to FGR Bogoso Prestea Limited (the Company).
This action follows recommendations from the Minerals Commission and the Attorney-General and is in line with the legal provisions under the Minerals and Mining Act, 2006 (Act 703), and the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176). The Ministry issued a formal directive to the Minerals Commission to notify the Company of the termination, effective from 3rd September 2024.
“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.”
Ministry for Lands and Natural Resources
Following the report from the Minerals Commission, Hon. Samuel A. Jinapor established an independent three-member committee to further assess the situation.
The Ministry revealed that the committee, after its review, reaffirmed the findings of the Minerals Commission, confirming that FGR Bogoso Prestea Limited had failed to meet the stipulated conditions of the conditional approval. This failure prompted the Minister to take definitive action.
The Ministry highlighted that the termination was also a result of extensive engagements with stakeholders, including officials from the Ministry, the Minerals Commission, and representatives of the Company.
The Minerals Commission had issued a notice to FGR Bogoso Prestea Limited, on 14th August 2023, citing violations of its mining lease agreements. Under regulation 200(3) of L.I. 2176, the Company was required to address and remedy these breaches within a specified period. However, the Company failed to rectify the issues within the stipulated timeline.
The Ministry noted that following the expiration of the notice, FGR Bogoso Prestea Limited applied for financial approvals to raise up to $150 million to pay off creditors and revive its mining operations.
This request aimed to address the Company’s debts and operational shortcomings. On 17th April 2024, the Minister responsible for Lands and Natural Resources granted the Company conditional approval to restructure its finances and operations.
Ministry for Lands and Natural Resources indicated that the approval came with specific conditions to be fulfilled within 120 days.
The Company was instructed to begin paying its workers’ outstanding salaries within two weeks of the approval and to complete all payments by 30th May 2024.
“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 bringing the mine to full operation within one hundred and twenty (120) days.”
Ministry for Lands and Natural Resources
Mitigating Environmental and Economic Impact
In light of the termination, the Ministry has directed the Minerals Commission to take immediate steps to prevent any adverse environmental impacts that could arise from the abrupt cessation of mining activities.
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.
This move is seen as critical to minimizing the economic disruption in the mining community and ensuring the continued viability of the region’s mining industry.
The Ministry of Lands and Natural Resources reiterated its commitment to the sustainable and transparent management of Ghana’s natural resources. The government emphasized that all mining operations in the country must adhere to strict environmental, financial, and operational standards, ensuring that the exploitation of natural resources benefits the people of Ghana.
The Ministry expressed its determination to act in good faith and uphold the principles of integrity in all its dealings. It reassured the public that it will continue to monitor mining activities across the country, taking action where necessary to ensure that mining operations are conducted responsibly and in accordance with Ghanaian law.
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