Gov’t Cites Regulatory Breaches in Termination of FGR Bogoso Prestea Mining Leases
The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has revoked the mining leases of FGR Bogoso Prestea Mining Limited, following recommendations from the Minerals Commission and the Attorney-General.
The decision, announced in an official statement on September 18, 2024, comes after extensive consultations and a thorough review of the company’s operations, which had been marred by controversy and local unrest.
The Ministry cited breaches of key provisions under the Minerals and Mining Act, 2006 (Act 703), as well as licensing regulations, as grounds for the termination.
Mr Jinapor’s move, which follows an investigation by a Ministerial Committee and input from the Minerals Commission, signals a decisive intervention in a case that has long been a flashpoint for discontent in the mining sector.
Mounting Tensions and Local Protests
The company had faced mounting pressure since early 2024, when over 400 members of the Ghana Mine Workers Union (GMWU) staged demonstrations, protesting against the company’s operational paralysis.
Inactivity at the mine had not only disrupted production but also adversely affected local livelihoods, leading to calls for immediate government intervention.
Local chiefs in the Prestea Huni-Valley Municipality, where the mine is located, also voiced strong opposition to Future Global Resources (FGR) for failing to revive operations as promised when it acquired the concession from Golden Star Resources in 2021.
Frustrated by the government’s delayed response, traditional leaders demanded action to avert the collapse of the mine, which they viewed as vital to the community’s economic stability.
Ministerial Review and Lease Termination
In response to these protests, the Ministry set up a committee to investigate the situation. Following its findings, the decision was made to terminate the leases, with Jinapor citing legal grounds under article 88 of the Constitution and sections of the Minerals and Mining Act.
The move is seen as a significant signal of the government’s commitment to enforcing regulatory compliance within the sector.
The revocation of FGR’s leases underscores the government’s willingness to intervene where private operators fail to meet their obligations. It also raises questions about the future of mining in the region, as stakeholders look to the Ministry for assurance that alternative arrangements will be made to sustain local employment and economic activity.
Implications for Ghana’s Mining Sector
The termination of FGR’s mining leases highlights broader concerns around governance and operational transparency within Ghana’s mining sector. It follows a growing trend of government interventions aimed at curbing underperformance and ensuring that mining companies adhere to contractual commitments.
Meanwhile, the Ministry has reassured workers and community members that their interests will be protected, but the case underscores the challenges of balancing corporate responsibility with the needs of local economies dependent on extractive industries.
