Ghana Mineworkers’ Union Commends Government on appointment of HEATH Goldfields

MEDIA STATEMENT

GHANA MINEWORKERS’ UNION COMMENDS THE GOVERNMENT OF GHANA ON THE APPOINTMENT OF HEATH GOLDFIELDS TO TAKE OVER THE BOGOSO AND PRESTEA MINES AND VEHEMENTLY REJECTS BASELESS CLAIMS BY FUTURE GLOBAL RESOURCES/BLUE GOLD

1. The Ghana Mineworkers’ Union would like to use this opportunity to commend the Government of Ghana for the bold and remarkable decision taken to issue the mining leases of the Bogoso/Prestea Mines to Heath Goldfields.

2. As a Union, our priority remains the prosperity of the Bogoso/Prestea Mines, the protection of incomes and livelihoods of our members and the growth of the local economies of Bogoso and Prestea. We are therefore happy about the decision of Government and wish to pledge our firm support and commitment  to work with Heath Goldfields to turnaround the Bogoso/Prestea Mines.

3. The Ghana Mineworkers’ Union is now convinced that the Bogoso/Prestea Mines are in a good position to receive the needed capitalization that will revamp the Bogoso/Prestea Mines and reposition them on the path of growth and sustainability.  

4. Whilst commending the Government for a good job done, the Ghana Mineworkers’ Union of TUC(Ghana) has sighted a number of very repugnant, disruptive and diversionary moves and articles authored by Future Global Resources, owners of Blue Gold International, since the issuance of the mining leases by the Government of Ghana to Heath Goldfields in November 2024.

5. As an Interested Party in this matter and having closely monitored events at every stage of the way, the Ghana Mineworkers’ Union is deeply convinced that the Government of Ghana has diligently acquitted itself in accordance with the laws of Ghana, not only in arriving at the decision to terminate the mining leases held by FGR/Blue Gold, but also the decision to issue these leases to Heath Goldfields.

6. The Ghana Mineworkers’ Union therefore rejects ALL claims orchestrated by FGR/Blue Gold seeking to impugn and undermine every effort of the Government of Ghana and other relevant stakeholders targeted at revamping the Bogoso/Prestea Mines.

7. The Ghana Mineworkers’ Union condemns the needless manoeuvrings  of FGR/Blue Gold and take a strong and uncompromising opposition to this retrogressive posturing which is only targeted at destroying the Bogoso and Prestea Mines, worsening the living conditions of workers and their families, collapsing local businesses and reducing the communities of Bogoso and Prestea into “ghost towns”.

8. The Ghana Mineworkers’ Union therefore stands fully with the decision of the Government of Ghana and commit to work with Government, Heath Goldfields, and all other relevant stakeholders,  to ensure the full realization of Government’s ultimate goal of revamping the Bogoso and Prestea Mines for the greater good of all stakeholders.

9. The Ghana Mineworkers’ Union ordinarily would not have bothered to restate the facts leading to the termination and issuance of mining leases to Heath Goldfields in respect of the Bogoso/Prestea Mines. However, given the numerous attempts by FGR/Blue Gold to throw dust into the eyes of the public with factual inaccuracies/misrepresentations, and also for the sake and benefit of industry watchers both locally and internationally, the Ghana Mineworkers’ Union has decided to provide some brief facts as a reaction to the numerous articles authored by FGR/Blue Gold on the subject matter.

BRIEF FACTS

10. FGR acquired the Bogoso Prestea Mines from Golden Star Resources in October 2020. However, due to financial constraints, the Mine ceased operations in December 2023.

11. As at December 2023, the operations of FGR Bogoso Prestea Mine came to a halt when VRA & GRIDCO cut power to the Bogoso and Presta operations due to the former’s indebtedness. As a result of the unavailability of power to the Process Plant and other key infrastructure, production also halted.

12. Therefore, since December 2023, the incomes and livelihoods of over one thousand workers (direct and indirect) have ceased, thus, imposing untold hardship on our members and their families. Statutory payments (including Tier 1, Tier 2, Provident Fund) of these workers have been in arrears since 2021. 

13. Aside its indebtedness to workers, FGR is also heavily indebted to Regulatory and government agencies, Local Suppliers & Vendors in excess of sixty million dollars ($60 million). A breakdown of this amount includes a debt of $22 million to Volta River Authority (VRA), $2.7 million to GRIDCO, $ 18.6 million to the Ghana Revenue Authority (GRA), $20 million to Local contractors providing essential services.

14. Threats of underground flooding and the potential overflow of the Tailings Storage Facility (TSF) into the environment and its concomitant effect on adjoining communities remain major red flags that require urgent attention. 

15. As a result of the weakening underground infrastructure and the implications on the health and safety of our members and coupled with FGR’s lack of financial capacity to invest in the business, a series of petitions were brought to the attention of the Minerals Commission and by extension the Ministry of Lands & Natural Resources demanding the Regulator’s urgent intervention to forestall a major disaster waiting to blowup. 

16. Following persistent complaints/petitions submitted to the Minerals Commission by the Union about the inability of FGR to inject capital into the business, and coupled with the Minerals Commission’s periodic inspection visits, it became glaring that indeed, FGR did not have the financial capacity to run the mine.

17. In addition to the complaints/petitions submitted by the Union, On 5^th February 2024, the leading opposition party in Ghana, the National Democratic Congress in solidarity with the Union and the entire Prestea Huni-Valley Constituency, called for the revocation of FGR’s mining license.

18. Convinced about the inability of FGR to run the mine, the Minerals Commission in August 2023, served 120 days notice on FGR in accordance with Regulation 200 of the Minerals and Mining (Licensing) Regulation, 2012, requesting them to show cause why the mining lease of FGR should not be terminated.

19. At the expiration of the 120 days notice in December 2023, FGR had not shown cause why the mining lease should not be terminated. On the back of FGR’s failure, the Minerals Commission made a recommendation to the Minister of Lands & Natural Resources in accordance with Regulation 200(1) of L.I. 2176 to terminate the mining lease.

20. On receipt of the recommendation from the Minerals Commission, the Minister wrote to the Attorney General and Minister of Justice for advice on whether all substantive and procedural legal steps required under law for the termination of the mining lease have been followed in light of the Minerals Commission’s recommendation for the FGR mining lease to be terminated.

21. In the Attorney General’s response to the Minister’s letter stated above, he indicated that FGR and Blue Gold had breached the mining laws and stated that “the Commission’s recommendation is sound in law and there is no need to continue to indulge the Company (FGR Bogoso Prestea Limited) with further grants of extension of time to remedy the breaches identified”.

22. In January 2024, FGR submitted a proposal to the Minister for Lands and Natural Resources (the “Minister”) to restructure the Company and raise One Hundred Fifty Million United States Dollars (US$150,000,000.00) to pay its creditors and revive the Mine.

23. However, FGR failed to fulfil the conditions given by the Minerals Commission.

24. In February 2024, the Minerals Commission, through its legal processes and considerations, concluded that FGR had breached the mining lease and recommended that the Minister terminates the mining leases.

25. The Minister wrote to the Minerals Commission in response to its recommendation, requesting the Minerals Commission to provide certain responses to aid him to act accordingly.

26. Interestingly, in the same month of February 2024, FGR further released a statement on its intended recapitalization as part of its proposed restructuring.

27. Consequently, by a letter dated 17^th April 2024, the Minister shelved the recommendation of the Minerals Commission and the advice of the Attorney General  and went ahead to grant FGR additional 120 days’ notice which he termed a “Conditional Approval” requiring FGR to execute their proposed restructuring plan within one hundred and twenty (120) days. FGR was also given two (2) weeks to commence payment of outstanding salaries and complete the same no later than 30^th May 2024.

28. The letter of 17^th April 2024 also stated expressly that the if FGR failed to meet the conditions, the Conditional Approval would be deemed revoked and the Mining Leases terminated without further recourse to the Company.

29. On 25^th April 2024, the Minister met Mine Workers and assured them that “should the Company fail to meet any of the above conditions, the Conditional Approval given shall be deemed revoked, and the Mining Leases terminated, without further recourse to the Company”.

• At the expiration of the 120 days’ notice, the Ghana Mine Workers Union wrote to the Minister further indicating the failure of FGR to fulfil the conditions of the Conditional Approval, and on 17^th July 2024, the Minister scheduled a meeting with the Ghana Mine Workers Union to discuss the concerns raised.
• On 15^th August 2024, the Minerals Commission, after visiting the mine, wrote a report on the operational status of the Mine and indicated the deteriorating nature of the mine.

• On 16^th August 2024, FGR wrote to the Minister to update him on the final milestone required by the Conditional Approval and indicated that they had purportedly acquired funding.

• On 19^th August 2024, the Minerals Commission responded to the Minister’s request that it provide a report on the operations of FGR, particularly their compliance or otherwise with the conditions. The Minerals Commission concluded that FGR has failed to fulfil the conditions and further recommended that the mining lease be revoked.

• The Minister further set up a Three-Member Committee to advise him on the status of issues relating to FGR’s operations.

• On 3^rd September 2024, the Minister wrote to FGR and Blue Gold and indicated that “ your failure to comply with the conditions contained in the Conditional Approval, and on the advice and recommendation of the Minerals Commission, the Conditional Approval granted on 17^th April 2024 stands revoked, and your Mining Leases terminated, in accordance with the terms of the Conditional Approval, …”

• Further, the Government announced in a press release dated 18 September 2024 that the Company’s Mining leases had been terminated on Tuesday, 3 September 2024.

• In furtherance of paragraphs above, on 18^th September 2024, the Minerals Commission issued a Notice of Termination of Mining Leases as required by law.

• On 20^th of September 2024, FGR and Blue Gold duly acknowledged receipt of the Notice of Termination.

• On 20^th September 2024, the Minerals Commission appointed an Interim Management Committee (IMC) made up of Labour and Staff of the Commission to manage the affairs of the mine pending the selection of a new investor according to law. 

• Subsequently, Heath Goldfields and other prospective investors applied for the Mining Leases and the Commission recommended to the Minister to grant the leases to Heath Goldfields.

• On 12^th November 2024, the Minister approved Heath Goldfields and granted the Mines to Heath Goldfields.

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