The Member of Parliament for Prestea Huni Valley, Hon Robert Wisdom Cudjoe has dragged the Minister for Lands and Natural Resources to Parliament over the closed down of Bogoso/Prestea Mines the takeover agreement between Golden Star Bogoso Prestea Limited (GSBPL) and Future Global Resources (FGR).

According to him, the supposed takeover has further worsened the plight of workers of the company leading to a closed down.

Mr. Cudjoe made this known when he summoned the Minister for Lands and Natural Resources to Parliament wanting to know the terms of agreement between the Golden Star Bogoso/Prestea Limited and the Future Global Resources.

“Mr. Speaker, I rise to ask the Minister for Lands and Natural Resources what are the terms of the takeover agreement between Golden Star Bogoso Prestea Limited (GSBPL) and Future Global Resources (FGR) and the commitment of the latter,” the MP quzzed the Minister.

In response, the sector minister, Samuel Abu Jinapor said, Golden Star (Bogoso/Prestea) Limited was the holder of mining leases in and around Prestea and Bogoso, with some of the leases dating back to 2001.

According to him, on 26th July 2020, Golden Star entered into an agreement with to FGR, subject to regulatory approvals. On the recommendations of Future Global Resources (FGR) to sell all its shares in the company the Minerals Commission, a No Objection was given by the then Minister, Hon. Kwaku Asomah-Cheremeh, on 30th September 2020, in accordance with section 52 of the Minerals and Mining Act, 2006 (Act 703), for FGR to acquire the interest of Golden Star in the mine.

The Minister explained that, the same day, FGR became the owner of the Prestea Bogoso mine. By the said takeover, FGR assumed all the rights and liabilities of Golden Star (Bogoso/Prestea) Limited.

“Mr Speaker, the terms of the takeover agreement are, essentially, made up of obligations, covenants, representations, warranties and guarantees by the parties to each other, leading to the closure of the agreement, including the terms of payment, delivery of document, and the taking of possession of the mine by FGR. However, as part of the request for a No Objection, FGR submitted a Funding.”

“Proposal, where the Company committed to inject capital to develop and expand the mine, with a focus on extending the existing underground mine, assessing the potential for additional discoveries and exploitation of sulphide resources,” Mr. Jinapor added.

He told parliament, the Company has, however, not been able to inject the requisite capital, and the operations of the mine has come to a halt due to a disconnection of power to the mine. The Ministry is working with all relevant stakeholders to ensure that the mine is revamped as soon as possible.

“Mr. Speaker, I want to assure the Hon. Member for Prestea Huni Valley, the Chiefs of people of the area, and this august House that just as we did with the Obuasi Mine, which was put under care and maintenance, and the Bibiani Mine, which had been dormant for seven (7) years, Government will work to revamp the Prestea mine, and secure the employment of its workers,” the Minister added.

But Hon Cudjoe told EXPRESSNEWSGHANA, he was disappointed in the Minister response to the questions on grounds that, the Minister failed to explained why FGR run the company down with huge debts with impunity.

He said he found very unacceptable where a company without any financial injection power could take over a whole mining company with just a proposal, pointing out that, the FGR as at the time of taking over the company did not invest a dollar into the company.

Currently, he said, FGR owed both the Minerals Commission,   the Ghana Revenue Authority and the VRA, among other statutory funds millions of dollars which led to the disconnection of power to the company.



Send your news stories and articles to or via WhatsApp +233 0543 900 732



About Author

Leave a Reply

Your email address will not be published. Required fields are marked *