Blue Gold Bogoso Prestea Limited has vowed to challenge the Ministry of Lands and Natural Resources’ decision to terminate the FGR Bogoso and Prestea mining leases. The company insists that the leases remain valid and are its property . This development comes after Lands Minister Samuel Abu Jinapor announced the termination, citing reviews from the Minerals Commission and a Ministerial Committee, as well as stakeholder engagement.
However, Blue Gold disputes the grounds for termination, deeming them questionable. The company is determined to fight this decision, emphasizing that the leases remain intact during the dispute.
The Ghana Mine Workers Union has been advocating for the termination of Future Global Resources’ lease due to lack of investment and operation of the mine. The union claims FGR hasn’t invested in the business since acquiring it in 2020, leading to significant hardship for workers.
In fact, the mine’s production has plummeted from 150,000 ounces of gold per year to just 60% of that. Workers have been largely idle for four months, and local suppliers and vendors are owed millions of dollars.
The union’s general secretary, Abdul-Moomin Gbana, stressed that FGR’s inability to invest and comply with the lease terms warrants termination. He believes the mine should be put up for sale.
The Bogoso-Prestea mine was acquired by Future Global Resources Limited from Golden Star Resources in 2020 for approximately $95 million. FGR owns 90% of the mine, with the Ghanaian government holding 10%.
The Ministry of Lands and Natural Resources’ decision may have been influenced by the union’s demonstrations and concerns. Nevertheless, Blue Gold is resolute in its opposition to the termination.
The dispute raises concerns about the future of the mine, the livelihoods of workers, and the impact on Ghana’s gold production.
As the situation unfolds, stakeholders will be watching closely to see how the government and Blue Gold navigate this complex issue.
