The Minister of Lands and Natural Resources, Hon. Samuel A. Jinapor, has terminated the mining leases of FGR Bogoso Prestea Limited following recommendations from the Minerals Commission and the Attorney-General.
This decision was made in accordance with article 88 of the Constitution, as well as sections of the Minerals and Mining Act, 2006 (Act 703) and the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176).
The termination, effective 3rd September 2024, follows months of review by a ministerial committee and extensive consultations with stakeholders.
Reports from the Minerals Commission indicate that FGR Bogoso Prestea Limited failed to comply with key conditions stipulated by the Ministry, including securing financial resources to pay its creditors and workers and reviving the mine's operations.
The company was earlier issued a notice on 14th August 2023 to rectify breaches in its mining leases.
In response, the company applied for approval to raise $150 million to clear its debts and revive operations.
Conditional approval was granted on 17th April 2024, requiring the company to begin paying outstanding salaries and demonstrate financial readiness to run the mine.
However, a follow-up report from the Minerals Commission in August 2024 revealed that none of these conditions had been met.
A three-member independent committee, formed by the Minister to further assess the situation, confirmed the company’s failure to meet its obligations.
Based on the committee's findings, the mining leases were revoked.
The Minerals Commission has been directed to mitigate any potential environmental damage caused by the closure of the mine and to engage prospective investors to revitalize the site.
The Ministry, under the leadership of President Akufo-Addo, reaffirmed its commitment to the sustainable and transparent management of Ghana's natural resources for the benefit of the nation.
Story by: Joshua Kwabena Smith
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