The Minister for Lands and Natural Resources, Mr Samuel Abu Jinapor, has terminated the mining leases granted to FGR Bogoso Prestea Limited.
This was based on the advice and recommendation of the Minerals Commission and the Attorney-General, pursuant to Article 88 of the Constitution, sections 5(1), 68(1) and 100(2) of the Minerals and Mining Act, 2006 (Act 703), and regulation 200(1) of the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176).
A statement released by the ministry on Wednesday stated that the decision to terminate the mining leases was taken after reviewing various reports from the Minerals Commission, a Ministerial Committee constituted to review the operations of the Company and after extensive engagement with stakeholders
It noted that the Minerals Commission on 14th August, 2023 issued a notice to the Company, pursuant to regulation 200(3) of L.I. 2176 to remedy breaches of the terms of its mining leases.
“Following the expiration of the said Notice, the Company applied for certain approvals and ‘No Objections’ to raise up to US$150,000,000.00 to pay its creditors and bring the mine back to life,” it said.
“The Conditional Approval was subject to among others: commencing the payment of outstanding salaries of workers within two weeks and completing payment 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 120 days; and bringing the mine to full operation within 120 days,” it stated.
According to the statement, a report received from the Minerals Commission on 19th August 2024, after the expiration of the 120 days on 16th August 2024, demonstrated that none of the conditions had been met.
It noted that the Minerals Commission has been directed by the minister to take measures to forestall any negative environmental impact that may arise from the termination of the leases
“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,” it added.
The Ministry assured Ghanaians of its unflinching commitment to the efficient, effective and sustainable exploitation and management of the nation’s natural resources in the spirit of transparency, anchored on integrity and utmost good faith for the benefit of all.
Irene Wirekoaa Osei & Tracy Fosua Okutu, ISD
