The leadership of the Ghana Mineworkers Union (GMWU) has expressed concerns that Future Global Resources Bogoso-Prestea Limited (FGRBPL), the current owners of the Bogoso-Prestea mines, lacks the financial capacity to operate the mines effectively. According to the union, FGRBPL, which has since created another company Blue Gold, has been unable to raise the necessary funds to run the mines and should lose its license.
FGRBPL acquired the mines from Gold Star Resources in 2020, but workers allege that the company has failed to operate the mines as required. In an interview with The High Street Journal, GMWU General Secretary Abdul-Moomin Gbana criticized the company’s inability to meet the deadlines set for starting operations and questioned why the Minister for Lands and Natural Resources, Samuel Abu Jinapor, has not yet revoked the company’s license, as he had threatened earlier in the year. “Not a single condition contained in the Minister’s Conditional Approval has been met by FGRBPL,” Mr. Gbana emphasized.
Mr. Gbana further explained that FGRBPL carries a debt burden exceeding $100 million and had attempted to ring-fence this debt by forming a new company, Blue Gold, in the hopes of using the new entity to secure funding. However, this effort has not been successful. He noted that many potential investors have shown interest in taking over the mines and urged the minister to revoke the license urgently to allow other investors to step in and manage the operations, given that the mine has a lifespan of over 25 years.
Mr. Gbana also revealed that some investors who approached Blue Gold were more interested in purchasing the company outright, but the owners of Blue Gold preferred to hold onto the company, despite its lack of operations. He accused the company’s owners of exploiting the situation, taking Ghana for granted, and holding the approximately 500 workers “ransom.”
FGRBPL has been under scrutiny since early 2024, when the Ministry of Lands and Natural Resources issued a 120-day ultimatum for the company to raise capital, compensate workers, and fully restore operations. Although the deadline expired in mid-August, the company has yet to make any significant progress.
Mr. Gbana’s comments highlight deeper issues within the mining sector, including corporate mismanagement, worker exploitation, and inadequate regulatory enforcement. He raised concerns that the mine continues to operate without necessary permits from the Environmental Protection Agency (EPA) and Mining Operating Permits, questioning the effectiveness of regulatory oversight. “The mine’s continued operation without proper oversight is nothing more than a deliberate ploy to hang onto the mineral rights by any means possible,” he added.
The failure to revoke FGRBPL’s mining leases, despite clear violations of conditions, raises questions about the government’s role in enforcing corporate governance in the mining sector. Workers have been left unpaid for months, and the local economy, which depends on the mine, suffers. Previous protests by workers at the Ministry of Lands and Natural Resources and Ghana’s Parliament have yielded little response, and frustration is growing among the workers.
The GMWU is now calling for immediate government intervention. “The conditional approval granted to this company has lapsed, and the company has failed in its obligations. There should be no further delays in holding them accountable,” Mr. Gbana stressed. The union’s demand for action comes amid increasing concerns about the broader impact on the Bogoso-Prestea community, which has long relied on the mine for economic support.
The GMWU has threatened a nationwide strike, which could shut down all mines in the country, if the government fails to take decisive action on their petition.
