The Herald, has landed the controversial letter authorizing the transfer of Bogoso Prestea Mines from the British-owned FGR Bogoso Prestea Mines to Heath Goldfields Limited, a Ghanaian company with Turkish partners.
Dated November 12, 2024, and addressed to the CEO of the Minerals Commission, Martin Ayisi, the letter has ignited legal challenges and political tensions, as well as key questions about the track record of Heath Goldfields Ltd in mining and its related businesses.
The Minister of Lands, Forestry, and Natural Resources, Samuel Abu Jinapor, is giving out the mines to a company which was registered in February, this year.
Mr Jinapor’s directive states: “Given the technical and financial capacity of Heath Goldfields Ltd, and on your advice and recommendation, approval is hereby given for the grant of the Prestea Bogoso Mine to Heath Goldfields Ltd, subject to compliance with the Minerals and Mining Act, 2006 (Act 703) and its Regulations, as well as the payment of appropriate fees.”
This decision comes despite a notice of dispute issued by FGR Bogoso Prestea Mines to the government, the Minerals Commission, and other stakeholders, signaling potential local and international legal battles.
Investigations by The Herald reveal a broader pattern of controversial decisions in Ghana’s mining sector, involving both Bogoso Prestea MinesandNewmont’s Akyem Mines. Sources allege irregularities, including financial inducements, with accusations that these actions could result in judgment debts and harm Ghana’s international reputation.
The Bogoso Prestea Mines, valued at approximately $40 million, is now set to be transferred to Heath Goldfields Ltd, a Ghanaian company with a stated capital of just GHC10,000. Critics have labelled this a “shell company” with no track record in mining. The transfer is reportedly part of a $20 million deal involving Turkish backers, with payments allegedly made to key officials.
Meanwhile, Newmont’s Akyem Mine is reportedly being prepared for sale to a Chinese entity for over $1 billion, although the deal awaits final approval, possibly from President Akufo-Addo.
The Concerned Workers’ Union of Bogoso Prestea Mines, condemned the government’s actions, accusing union leaders of prioritizing personal gain over community welfare.
“Our leaders prioritize personal gain over the collective well-being of workers and the community,” the group stated, urging FGR/Blue Gold to collaborate with employees to restore operations.
FGR Bogoso Prestea Mines, in its defence, has rejected allegations of operational breaches cited by the Ministry, stating that it has been compliant and plans to contest the lease termination.
With less than three weeks to the 2024 General Elections, these mining controversies have heightened scrutiny on the government. Parliament is expected to review the deals, but time constraints and political dynamics raise uncertainties about their approval.
A new administration in January 2025 could face the dilemma of endorsing or revoking these contentious agreements, potentially reopening negotiations to align with legal standards and best practices.
