The Government of Ghana, through the Minerals Commission, has taken full control of the Bogoso Prestea Mines following the termination of the mining lease held by Future Global Resources (FGR).
With the lease legally reverted to the state, the Commission is now responsible for the day-to-day management of the mine. An Interim Management Committee (IMC) has been constituted to oversee operations and ensure the safety of the installations, while efforts to secure a new investor are actively underway.
The General Secretary of the Ghana Mine Workers Union (GMWU), Mr. Abdul-Moomin Gbana, in an exclusive interview with The High Street Journal, indicated that the Minerals Commission has been in charge since the termination, as they are the technical authority overseeing mining in Ghana.
“Once the lease is terminated, by law, the mining concession reverts to the state and it becomes the property of the state and so the competent authority in charge of the mining now is the minerals commission. The Minerals Commission took charge because they are mainly the technical people,” Mr. Gbana explained.
The IMC, composed of three senior managers from the mine, three union representatives, and led by the Regional Manager of the Minerals Commission for the Western Region, is tasked with ensuring the mine’s safety and managing its operations during the transition.
Mr. Gbana noted that engagements between the Union and the Commission have been productive, and the interim arrangement is focused on maintaining the safety and stability of the mine while discussions with potential investors are ongoing.
Mr. Gbana also addressed claims made by FGR regarding the legality of the termination. He clarified that the government, through the Minerals Commission, followed due process by issuing two separate notices to FGR. The first notice gave FGR 120 days to rectify operational challenges, which they failed to do. The government then extended an additional 120 days with conditionalities, but FGR once again did not meet these requirements, leading to the lawful termination of the lease.
“FGR has no legal issue, they claim that the government that’s, the mineral commission did not comply with the law, which is overly false. The minerals commission and by extension the government gave them two different notices, the first one was a notice of 120 days for them to repair major challenges which they failed to and by law, government had every right to terminate the lease but the minister decided to give them an additional 120 but he did that with a conditional clause. During these 120 days, they failed again.” he said
He further emphasized that the efforts to secure a new investor for the Bogoso Prestea Mines have yielded encouraging progress. Ensuring the safety and operational integrity of the mine remains a top priority, and stakeholders have been involved in productive discussions to facilitate a seamless transition.
Several potential investors are reported to have shown significant interest in taking over the mine’s operations. Once an investment agreement is finalized, it is understood that all details will be disclosed, guaranteeing transparency and stability in the mine’s future management and operations.
The termination of the mining lease of Future Global Resources (FGR) at the Bogoso Prestea mines came after months of protests and agitation from mine workers. Workers at the Bogoso Prestea mine, led by the Ghana Mine Workers’ Union (GMWU), began protesting as early as April 2024, demanding action from the government due to what they described as FGR’s mismanagement, unpaid salaries, and failure to invest in the mine.
The situation escalated in September 2024, when the workers staged a series of demonstrations, including a planned picketing at the Jubilee House and Parliament, to bring their concerns to the highest levels of government. The workers specifically called for the termination of FGR’s mining lease and the introduction of new investors to manage the mine effectively.
These protests were driven by claims from the workers that FGR had failed to meet its obligations, despite acquiring the mine in 2020 from Golden Star Resources. Workers also accused the company of attempting to retain control of the mine without addressing key operational and financial issues. During the protests, GMWU’s General Secretary, Abdul-Moomin Gbana, expressed frustration at FGR’s refusal to comply with conditions laid out by the government.
In response to the growing unrest, the Minister for Lands and Natural Resources, Samuel Abu Jinapor, officially terminated FGR’s lease on September 18, 2024, after extensive consultations with the Minerals Commission and the Attorney-General’s office.
The termination followed the government’s issuance of two notices to FGR, granting the company time to resolve its operational challenges, which it failed to do.
The government emphasized that this decision was made in the interest of protecting the livelihoods of the workers and safeguarding the future of the mine.
