30 September, 2024After conditions of employment for over 1,000 workers deteriorated and became precarious, the Ghana Mine Workers Union (GMWU) and other organizations, campaigned and petitioned the Ghanaian government to cancel the gold mining licence for Bogoso-Prestea Mine.
One of the reasons for the cancellation is failure to pay wages and benefits on time. Workers only received wages for December 2023 and January 2024 and have not been paid since. Their pensions and other benefits are also in arrears.
UK registered Future Global Resources (FGR) acquired the mine in 2020 on condition that the mining company would invest into the mine. However, FGR, which holds 90 percent of the mine, failed to invest and develop the mine and instead became indebted to its suppliers. The government of Ghana owns the remaining 10 percent.
For many years, the community of Prestea has expressed concerns over pollution of water sources by gold mining companies including FGR. Community fears have been worsened by the flooding of the Central shaft, and the Bondaye shaft had only one working pump while some open pits were taken over by artisanal and small-scale miners.
Further, some sections of the tailing storage facility have been neglected, and the processing plant is in a state of disrepair, according to the government notice of termination. The union says this points to FGR’s failure on its environmental, social and governance (ESG) responsibilities.
“FGR lacks the financial capacity to inject the needed capital into the Bogoso-Prestea Mine and indeed has demonstrated its inability to show cause to the minerals commission during the 120 days’ notice period why the mining lease should not be terminated,” wrote the union in a petition to the Ghanaian Parliament.
Heeding the union and other stakeholders’ petitions and demonstrations, the ministry of lands and natural resources terminated the mining licence on 18 September.
“The decision to terminate the mining licence was taken after reviewing various reports from a minerals commission as well as a ministerial committee constituted to review the operations of the company, and after extensive engagement with all stakeholders involved in this matter,” wrote the ministry in a statement. The ministry stated that it was looking for other investors to take over the mine and has since appointed a caretaker team to oversee operations.
The GMWU, an IndustriALL affiliate, is in favour of the resumption of production at the mine which will benefit workers.
“A union meeting resolved to embark on a series of demonstrations, picketing, and protest marches if the minister refused to terminate the mining lease and allow other prospective investors to take over the mine and run it for the greater good of all stakeholders,”
said Abdul-Moomin Gbana, GMWU, general secretary.
Paule France Ndessomin, IndustriALL Sub-Saharan Africa regional secretary said:
“FGR must pay outstanding wages and benefits, and the caretaker team must ensure that jobs are protected. Further, the government must enforce compliance with environmental laws to ensure the protection of community water sources against pollution.”