Ghana Mine Workers Union Demands Termination of Future Global Resources' Lease for Bogoso-Prestea Mine

Key Takeaway

• Ghana Mine Workers Union demands termination of Future Global Resources' lease for Bogoso-Prestea mine due to poor management.
• FGR's acquisition led to a significant production drop, from 150,000 ounces annually to 60% of that figure.
• The company faces financial struggles, including halted operations and unpaid bills, impacting workers and the local economy.

Union Calls for Action

The Ghana Mine Workers Union is actively seeking the termination of the mining lease held by Future Global Resources Ltd. (FGR) for the Bogoso-Prestea gold mine. The union, representing 15,000 members, has voiced concerns over FGR's financial capacity to invest in and operate the mine effectively since its acquisition in 2020. Abdul-Moomin Gbana, the union's general secretary, highlighted the lack of investment by FGR in the mine, which has led to a significant downturn in its operations. Demonstrations are planned in Accra to press the government for action.

Financial and Operational Struggles

FGR's management of the Bogoso-Prestea mine has faced several challenges, including a halt in mining activities since December due to nonpayment of energy bills. The company, a unit of UK-based Blue International Holdings, reportedly owes millions to local suppliers and vendors. Workers have been largely out of work for the past four months. Prior to FGR's acquisition, the mine produced 150,000 ounces of gold annually, a figure that has since dropped to 60% of its former output. The union's dissatisfaction stems from the adverse impact on its members and the local economy.

Acquisition and Ownership

Blue International Holdings established FGR in 2020 with the aim of acquiring quality mining assets in sub-Saharan Africa. FGR's acquisition of the Bogoso-Prestea mine for approximately $95 million from Toronto-based Golden Star Resources Ltd. was seen as a strategic move to bolster its portfolio. The mine, located in Ghana's Ashanti Region, is 90% owned by FGR, with the remaining 10% held by the Ghanaian government. The sale was part of a broader trend of international investment in the region's gold mining sector.

Management Quotes

• Abdul-Moomin Gbana, General Secretary of the Ghana Mine Workers Union:

  "Since FGR took over the business in 2020 it hasn’t invested anything in the business and clearly it has brought the business to its knees. Since December mining activity has been at standstill after the state energy producer cut supply to the mine for nonpayment of bills." "We take the view that the inability of FGR to invest into the business and thus the untold hardship that our members continue to go through, are what are accounting for our decision to embark on this demonstration. We want to bring to the attention of the government that FGR has not been able to comply with the dictates of the lease and for that matter, the mining lease should be terminated so that mine can be put on sale."