Attack on Golden Star Resources to impact gold-for-oil policy
Golden Star Wassa Limited, a Ghanaian mining company, has raised concerns over the impact of recent attacks by illegal miners on its contribution to the government’s gold-for-oil programme.
The company reported that its Benso mine, which accounts for approximately one third of its total production, will not be able to produce or bring in any ore for about a month or two, which will significantly affect its overall production levels.
Gerard Boakye, the Group Corporate Affairs Manager for Golden Star Wassa Limited, has stated that the company’s reduced production levels will impact its contribution to the government’s gold-for-oil programme, which requires every mining company in Ghana to contribute 20% of its annual production for purchase by the government. The government then uses this gold to pay for oil imports.
Mr Boakye also highlighted the negative impact on the company’s operations and its stakeholders.
According to him, the reduced production levels will result in the company paying people without them working, contractors being kept on a retainer, and workers being at home without work.
The reduced production levels will also affect the company’s statutory payments to government agencies such as MinCom and GRA.
The situation faced by Golden Star Wassa Limited is not unique. Illegal mining activities have been a major problem for the mining industry in Ghana for many years.
These activities pose significant challenges to mining companies in the country, including loss of revenue, damage to equipment, and threats to the safety of employees. Illegal mining also contributes to environmental degradation, social tensions, and in some cases, violence.
The Ghanaian government has taken several measures to address illegal mining activities in the country. These include the establishment of a multi-sectoral task force to combat illegal mining.
