REJOINDER: Save the Bogoso Prestea Mine, Act Now
Future Global Resources (FGR) and its parent company, Blue International Group (Blue), are compelled to respond to an article that appeared in the 12 January 2022 edition of the Business and Financial Times (B&FT), as well as the online business portal, norvanreports.com, which contained factual inaccuracies and gross misrepresentation of facts, targetted at discrediting and injuring the reputation of FGR and Blue. For the benefit of our employees, communities, regulators, and other key stakeholders, FGR and Blue wish to correct the inaccuracies as follows:
Ownership
Future Global Resources (FGR) is part of the Blue International Group, which has been operating in sub-Saharan Africa for over 12 years and has institutional investors within the wider group that include indirect holdings by the UK government, European Union, and government of South Africa, as well as 150 private shareholders. Golden Star Resources is not, and never has been, a shareholder (direct or indirect) in FGR or the Blue International Group; nor does it have any common shareholders with any group company. Nor do any of the principal shareholders in FGR or the Blue International Group have an economic interest in Golden Star Resources or La Mancha.
FGR acquired the Bogoso Prestea Mine from Golden Star Resources on 30 September 2020, and is in compliance with all terms of the sale and purchase of the Bogoso Prestea Mine signed from Golden Star Resources.
Regulatory Compliance
Since acquiring the Bogoso Prestea Mine, the company has posted the Environmental Bond that covers land remediation obligations and is in compliance with all statutory and financial obligations. The company has since submitted its 2022 Mine Operating Plan to the regulator.
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Investment and Operations
The Blue International Group has invested over U$110m in various projects in sub-Saharan Africa over the past 12 years, including over US$20m into the Bogoso Prestea Mine in the past 12 months.
The management team at FGR has over 100 years of collective experience in the mining sector, including many decades operating successfully in sub-Saharan Africa.
In the past 15 months since acquisition, the Blue management team – working in close cooperation with the local leadership team and local community – have addressed various systemic issues that hampered the mine’s sustainable operation, including mining activities and improved cost efficiencies
In July 2021, the company agreed – at the request of the permanent employees – to be restructured as fixed-term contractors (at a cost of US$21m to the company, to be paid in three instalments; the first having been made in October 2021 as scheduled).
As part of the turnaround strategy for the mine, which had been making substantial losses for many years prior to its acquisition by FGR, the company embarked on an operational and labour rationalisation aimed at improving operational efficiencies, reducing cost, and providing a solid foundation for future growth and expansion. It is important to note that the planned reduction in labour numbers, at this time in the turnaround process, is critical for establishing a sustainable baseline that will support the company’s organic growth in the coming years. It is anticipated that more labour/human resources will be required as the company begins to expand operations.
As a result of the above, in Q4 2021 the Bogoso Prestea Mine experienced its first quarter of sustainable operations in over five years. This improvement in operational performance will enable it to continue reducing the inherited high trade creditor balances.
Blue International intends to continue investing in the mine over the coming years, with the intention of doubling processing throughput during 2022 and developing a refractory processing plant before 2025 – to create a multi-generational mine that takes full advantage of the significant resource potential at the site and benefits all stakeholders in the years to come.
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