The Herald has picked up some interesting developments at the Ministry of Lands, Forestry and Natural Resources, which has left many industry players in the mining sector very stunned. The development, has to do with the handling of some mines in the country with both state and foreign private interests.
The Herald’s investigations into two mines Bogoso Prestea Mines and Newmont’s Akyem mines, show how officials at the Ministry, as well as its regulatory agency; the Mineral Commission, have taken certain decisions described as controversial which could land the country in a dangerous situation.
Aside from reports of money changing hands with key officials at various levels named in the lead to these controversial decisions, The Herald is informed that the country is certainly going to face certain legal consequences soon with colossal judgment debts looming.
While, Bogoso Prestea Mines, has been given to the Turkish company, Newmont’s Akyem Mine, has been sold to a Chinese company in the region of over US$1 billion.
The Herald is informed about an interesting relationship between the Chinese Company and certain key decisions taken at the Ministry of Lands, Forestry and Natural Resources, concerning Newmont’s Akyem Mine which has irked Jubilee House; the presidency while a rift has erupted between named officials at the ministry.
In the case of Bogoso Prestea Mines, the Turkish company is working with a company known as Heath Goldfields Ltd with names such as Sylvia Naa Odarley Amporful and Edwin Kpedor named as Directors and corporate secretary. A company named Eureka Capital Limited, has also been captured as linked to Heath Goldfields Ltd.
There’s said to be a promise of some 20 million dollars being spread around by the Turkish company towards the realisation of that venture. The Herald is working on key recipients of the first tranche of the said money.
Interestingly, Bogoso Prestea Mines is currently owned by a British company named FGR Bogoso Prestea Mines which in recent times has complained about being frustrated by both the Ministry led by Samuel Abu Jinapor and the Mineral Commission management led by Martin Ayisi, and its Board led by Barbara Oteng Gyasi.
The Herald is picking details that Heath Goldfields Ltd, the Ghanaian partners of the Turkish company recently incorporated, has with its stated capital GHC10, 000. This has been described as a joke considering the fact that Bogoso Prestea Mines has been valued in the region of US$40 million.
Interestingly, while the incorporation was ongoing towards handing the mines to the Turkish and their Ghanaian partners, the frustrated British company, FGR Bogoso Prestea Mines had issued warnings to the government of going to court to enforce its rights over the mines.
Insiders told The Herald that the Akufo-Addo government, Minerals Commission and all other interested parties, have been issued with a notice of dispute by FGR Bogoso Prestea Mines both in Ghana as well as abroad.
Indeed, as of last week, the FGR Bogoso Prestea Mines, had ignited a process locally injunct the Akufo-Addo government after a letter by Minister of Lands, Forestry and Natural Resources, Samuel Abu Jinapor dated November 12, 2024, and addressed to the Chief Executive Officer of the Mineral Commission, Martin Ayisi, became public.
Mr Jinapor’s letter, has asked for the Bogoso Prestea Mines to be given to Heath Goldfields Limited subject to the compliance of the Minerals Act of 2006, Act 703.
This means the Turkish, owners of Heath Goldfields Limited, are taking the asset from the British who have financed the company, including paying the salaries and others benefits of the workers about few days away from listing on the New York Stock Exchange.
Again, with about three weeks prior to the 2024 General elections, ahead of the expiration of the Akufo-Addo government giving Bogoso Prestea Mines to a Ghanaian shell company with no track records is also raising eyebrows in the industry.
In the case of the Akyem mines, officials of both the Lands Ministry and the Mineral Commission are said to be working towards handing over the mines to the Chinese, but it not clear if the President Akufo-Addo will consent to that and participate in the process.
The deals are also expected to go to Parliament for approval and with few weeks to the election, it’s not certain that will be done before President Akufo-Addo, leaves office.
Interestingly, Ghana’s Parliament, has a history of approving controversial deals and passing key legislation under emergency sometimes before Parliament’s term ends.
Whichever way it goes, a new government starting from January 2025 might be forced into turbulent waters by the actions of the officials at the Ministry and its regulatory hand, the Minerals Commission either to rubber-stamp their “bought” decisions or abrogate the process and restart it ensuring they are in line of legal requirements and best practices.
In September 2024, the Board Chairperson of the Minerals Commission, Barbara Oteng Gyasi, and its Chief Executive Officer (CEO), Martin Ayisi, faced allegations of jeopardizing Ghana’s investment climate. The accusations stem from their involvement in the controversial termination of the FGR Bogoso-Prestea mines lease, a decision critics say could lead to international legal disputes and erode investor confidence in the mining sector.
The Concerned Workers’ Union of Bogoso Prestea Mines, criticized union leaders advocating for the government to abrogate the lease in favour of a new, unidentified entity. The workers described this stance as “disingenuous and unpatriotic,” claiming it served personal interests rather than the collective good.
In a strongly worded statement, the Concerned Workers alleged that some union leaders illegally sold company property, and deliberately sabotaged operations by flooding underground tunnels to hinder reopening efforts and also colluded with external entities to frustrate the operations of FGR/Blue Gold.
“Our leaders prioritize personal gain over the collective well-being of workers and the community,” the statement read. “The community overwhelmingly supports reopening the mine, and we question why union leaders refuse to engage with management.”
The workers called on FGR/Blue Gold to collaborate with willing employees to revive the mine, emphasizing the urgency of restoring livelihoods: “We can no longer be used to serve individual interests. Let us work together to rebuild.”
This was after the Ministry of Lands and Natural Resources on September 18, 2024, announced the termination of FGR Bogoso-Prestea’s mining lease, citing reports from the Minerals Commission and a Ministerial Committee. The government claimed FGR had failed to address operational breaches despite advisories issued in 2023.
Samuel Abu Jinapor, justified the decision, stating that the company’s response to a notice to show cause had been unsatisfactory. A caretaker team, led by senior officers and union representatives, was appointed to manage the mine’s operations temporarily.
But FGR Bogoso Prestea Limited, the mine’s current operator, rejected the government’s claims. The company maintained its operations were legal and announced plans to challenge the termination. In a public statement, Blue Gold emphasized that the lease remained valid and urged employees to continue their duties, assuring that due process would be followed.
At the time, sources within the Ministry of Lands and Natural Resources alleged that Barbara Oteng Gyasi and Martin Ayisi, had exceeded their regulatory mandates. Their actions, including attempts to negotiate alternative deals for the mine, reportedly undermined FGR’s operations and created instability.
Notably, Barbara Oteng Gyasi, a former MP for Prestea Huni-Valley, allegedly used her position to advance local political interests while Martin Ayisi reportedly engaged with potential investors abroad, including efforts to sell the mine during a South African mining conference.
The pair’s actions allegedly fueled tensions between FGR and local stakeholders, including traditional authorities and the Ghana Mine Workers Union, leading to protests in April 2024.
Critics had questioned the abrupt termination of FGR’s lease without adhering to the legally required 30-day notice. Industry insiders speculate that the concession may be transferred to other parties, possibly for illicit small-scale mining (galamsey) operations.
Blue Gold, which acquired the mine in 2020 during the COVID-19 pandemic, claimed it had secured a $100 million investment from Gerald Group to revitalize operations. The company accused the Minerals Commission of scuttling these efforts.
Barbara Oteng Gyasi, defended her actions on a local radio Asomdwe 102.1 FM, claiming they were aimed at addressing the community’s concerns. However, reports suggest her involvement has fueled divisions, with some workers accusing her of exploiting the situation for political gain.
With escalating tensions, the outcome of this controversy could have far-reaching consequences for Ghana’s mining sector and its reputation among foreign investors.
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