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Business & Economy

Ghana Mineworkers’ Union Threatens to Shut Down Mining Operations Nationwide

The Ghana Mineworkers' Union threatens a nationwide mining shutdown over unpaid workers and unfulfilled obligations by Future Global Resources, demanding swift government intervention.

Solomon Boakye
Sep 17, 2024

The crisis engulfing the Prestea mining sector is escalating, as the Ghana Mineworkers’ Union (GMWU) threatens to shut down mining operations across the country if their demands are not met.

In a candid interview with The High Street Journal, Mr. Abdul-Moomin Gbana, General Secretary of the GMWU, outlined the union’s ultimatum, signalling that the ongoing issues with Future Global Resources Bogoso-Prestea Limited (FGRBPL) reconstituted as Blue Gold, have reached a breaking point.

For months, the union has been locked in a bitter dispute with FGRBPL, which has failed to meet its obligations, including paying workers and revitalizing the Bogoso-Prestea mine’s operations. Despite a 120-day ultimatum issued by the Ministry of Lands and Natural Resources in early 2024, which elapsed in August, the company has not raised the capital needed to address the operational and financial shortfalls.

Workers have been left unpaid for months, and their livelihoods hang in the balance. They want the licence of the company withdrawn and issued to other interested investors.

Mr. Gbana did not mince words in the interview. “We are prepared to shut down the entire mining industry if nothing is done about our situation,” he declared, leaving no doubt about the union’s intent to escalate the issue if the government fails to act. The union has tried peaceful protests and submitted petitions, but their grievances have yet to be addressed, prompting the threat of a nationwide mining shutdown.

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Mining is one of Ghana’s economic cornerstones, contributing significantly to the country’s Gross Domestic Product (GDP). The sector provides jobs for thousands of workers and generates substantial revenue through taxes, royalties, and exports. A nationwide shutdown would be a catastrophic blow to both the local and national economy.

If the GMWU follows through with its plan, it could result in halted production across the country’s mining operations, putting an already fragile economic sector in jeopardy. Furthermore, the shutdown could damage Ghana’s reputation as a stable destination for mining investment, as international investors may become wary of the country’s ability to manage labor disputes.

The GMWU is demanding swift government intervention. Workers at the Bogoso-Prestea mine have been left in dire straits, with over 500 of them going months without pay. The company, according to Mr. Gbana, has continued to operate without proper permits from the Environmental Protection Agency (EPA) and the Minerals Commission, violating both operational and environmental regulations.

The union is poised to take drastic action if their demands are not met. “This has been ongoing for far too long, and our people have had enough. We’re ready to shut everything down if necessary,” Mr. Gbana said.

The Union had planned to picket the Jubilee House and the Ministry of Lands and Natural Resources but the Police requested that the picketing be rescheduled to Wednesday, September 18. Although this was communicated on Friday, over 200 mine workers travelled to Accra and Monday, September 16 and staged a protest at the premises of the Ghana Trades Union Congress.

The mine workers have vowed to stay in Accra until their grievances are met.  They and others are expected to picket the Ministry of Lands and Natural Resources on 19th and continue to protest until the licences of FGRBPL is withdrawn.

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