Recent developments within Ghana’s Ministry of Lands, Forestry, and Natural Resources have sparked intense debates in the mining sector, leaving industry players and observers stunned. Two prominent cases—the handling of Bogoso Prestea Mines and Newmont’s Akyem Mine—have drawn sharp criticism and raised questions about governance, legality, and the future of mining in the country.
Investigations by The Herald reveal controversial decisions by the Ministry and its regulatory body, the Mineral Commission, which could expose Ghana to colossal judgment debts and international legal battles. These actions include the alleged transfer of Bogoso Prestea Mines to a Turkish company and Newmont’s Akyem Mine to a Chinese firm in a deal reportedly exceeding $1 billion.
The Bogoso Prestea case is particularly contentious. The mines, currently owned by British company FGR Bogoso Prestea, have faced operational challenges. Despite this, FGR continued funding the mine’s operations and paying worker salaries. Recently, however, the Ministry directed the transfer of the mine’s lease to Heath Goldfields Limited, a Ghanaian company partnered with the Turkish investors. This decision has drawn widespread criticism, as Heath Goldfields reportedly has a stated capital of only GHC10,000, far below the $40 million valuation of the Bogoso Prestea Mines.
FGR Bogoso Prestea has issued a formal dispute notice to the Ghanaian government and international bodies, threatening legal action. The company claims its rights have been violated, especially as it was preparing to list the mines on the New York Stock Exchange. The alleged involvement of top officials in the Ministry and the Mineral Commission, including Minister Samuel Abu Jinapor, CEO Martin Ayisi, and Board Chair Barbara Oteng Gyasi, has added to the controversy.
The Turkish company reportedly pledged $20 million to facilitate the deal, with some funds allegedly distributed to key officials. Amid these accusations, critics argue that transferring such a significant asset to a shell company with no track record raises ethical and governance concerns. The timing of the decision—just weeks before Ghana’s general elections—has further fueled speculation about political motivations.
The controversy surrounding Newmont’s Akyem Mine is no less significant. Reports suggest that the mine is being sold to a Chinese company, sparking tensions between the Ministry and Jubilee House, the seat of government. While details remain unclear, the potential sale has raised questions about due diligence, legal compliance, and national interests. Observers fear that rushing the deal through Parliament before the election could lead to further disputes.
The September termination of FGR Bogoso Prestea’s lease has been cited as a major trigger for the current unrest. The Ministry, citing operational breaches, announced the termination and appointed a caretaker team to oversee operations. FGR strongly contested this move, arguing that it violated legal procedures, including the mandatory 30-day notice period. The company maintains that its operations were lawful and has vowed to challenge the termination in court.
Meanwhile, workers at Bogoso Prestea Mines have been caught in the crossfire. The Concerned Workers’ Union has accused union leaders of sabotaging operations and colluding with external entities for personal gain. The union also criticized the government’s decision to terminate the lease, describing it as detrimental to workers’ livelihoods and the community’s well-being. FGR has urged workers to remain committed, emphasizing its plans to revive operations in collaboration with Gerald Group, which pledged $100 million in investment.
The actions of the Mineral Commission, particularly its leadership, have come under scrutiny. Barbara Oteng Gyasi and Martin Ayisi have been accused of exceeding their regulatory mandates and undermining FGR’s efforts. Allegations include attempts to negotiate alternative deals during international mining conferences and engaging with potential investors without proper oversight. Critics argue that these actions have damaged investor confidence and Ghana’s international reputation.
Local protests have further highlighted the tensions. Workers and community members have expressed frustration with the government’s handling of the situation, accusing officials of prioritizing political and personal interests over national development. Allegations of illegal small-scale mining (galamsey) operations linked to the terminated lease have also surfaced, adding another layer of complexity to the issue.
As Ghana approaches its 2024 general elections, the implications of these controversies are profound. A new administration may face the difficult task of addressing legal challenges, restoring investor confidence, and ensuring that future mining agreements adhere to international best practices. Observers warn that the current administration’s actions could leave a legacy of instability and legal battles for years to come.
The Herald continues to monitor these developments as Ghana navigates a turbulent chapter in its mining sector. The decisions taken in the coming weeks will undoubtedly shape the industry’s future and influence the country’s standing on the global stage.
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