FGR Misses 120-Day Deadline for Prestea and Bogoso Mine Revamp; Faces Mining Lease Revocation
The deadline set by Ghana’s Ministry of Lands and Natural Resources for Future Global Resources (FGR) to revive operations at the Prestea and Bogoso mines has expired, with the company failing to meet key conditions.
Established to ensure a significant capital injection and the resumption of mining activities, the 120-day deadline ended without the required progress, leaving the mines dormant since December 2023.
Nana Nteboa Pra, Chief of Hima Prestea, voiced serious concerns over FGR’s inability to fulfill most of its obligations, aside from paying overdue worker salaries.
Commenting on the issue, Nana Nteboa Pra highlighted the frustration and uncertainty felt by the local community and the mine’s workforce, who have been left in limbo for months.
He also criticized the government for its lack of engagement with local stakeholders, stressing that the community feels marginalized in the decision-making process.
“Government also needs to engage the local communities, the chiefs, and opinion leaders here, to explain to them the current situations happening. The chiefs have been to the ministries, with a promise from the ministry that they will engage both parties. Since last year, October, up to date, not a word from the ministry to the local communities. And it’s a worry that as chiefs, we don’t matter, or the government doesn’t care about us. I don’t want to believe that.”
“We should be properly engaged and see our way forward in some of these situations. Rather than government ignoring us as if we don’t care, and that they are the regulators, so therefore they have to make decisions. Yes, we know that you have to make the decisions, but we should be seen as partners in development. Don’t forget, we are the immediate stakeholders here, the immediate beneficiaries of whatever is happening here, either good or bad. So, the government needs to engage as well in this situation. Probably, we might also find support elsewhere for these mines to be revamped, rather than be seen as if we don’t matter here”, he averred.
FGR, which took over the mines from Golden Star Resources in October 2020, submitted a proposal in early 2024 to raise $150 million to pay creditors and restart operations.
While the government granted conditional approval, requiring FGR to demonstrate its financial capability within 120 days, the company failed to secure the necessary funding, putting its mining leases at risk.
The Ministry of Lands and Natural Resources now faces a crucial decision on how to proceed with the future of the Prestea and Bogoso mines.
The Ministry, in its April 2024 statement, had warned that failure to meet the conditions would lead to the revocation of FGR’s leases, a scenario that now seems increasingly likely.
As the situation unfolds, the government must weigh its options, with the local community eagerly awaiting a resolution that could restore stability and economic activity in the region.
The Ministry has reiterated its commitment to protecting jobs and ensuring the sustainable management of the country’s natural resources, but FGR’s failure to meet its obligations raises serious questions about its ability to deliver on its promises.
