Blue Gold Bogoso Prestea Limited has announced its intention to challenge the recent termination of the FGR Bogoso and Prestea mining leases by Ghana’s Ministry of Lands and Natural Resources. The company’s response underscores its stance that the mining leases are still valid and legally belong to Blue Gold.
The termination decision was publicly disclosed by the Ministry on Wednesday, September 18, 2024, in a statement signed by the Lands Minister, Samuel Abu Jinapor. According to the statement, the decision was made following a thorough review of reports from the Minerals Commission and a Ministerial Committee that evaluated the operations of FGR Bogoso Prestea Limited. Extensive consultations with relevant stakeholders were also part of the process.
In its official response, Blue Gold Bogoso Prestea Limited questioned the grounds for the termination and firmly asserted that the mining leases remain valid. The company emphasized that it had not received any formal communication regarding the termination and that it would dispute the decision vigorously.
The company’s statement read:
“RE: TERMINATION OF FGR BOGOSO PRESTEA LIMITED MINING LEASE
The attention of Blue Gold has been drawn to a press release from the Ministry of Lands and Natural Resources today Wednesday, September 18, 2024, in which it states that the sector minister has terminated the mining lease of FGR Bogoso Prestea Mines on September 3, 2024.
We wish to state that no such communication has been received by the company.
Furthermore, we wish to state that the grounds for any such termination would be strongly disputed by the company, and while any such dispute is ongoing the mining leases remain fully valid and the property of the company.
We therefore take this opportunity to assure all our workers on site to remain calm and go about their duties as the process of termination of a mining lease is subject to prescribed legal procedures to protect the interests of all stakeholders and ensure that due process is followed.
Blue Gold is committed to the mine as our recent investments in the mine have shown.”
The Ministry’s decision follows a series of protests and concerns raised by various stakeholders, including the Ghana Mine Workers Union. The union had previously picketed at the Ministry, advocating for the termination of FGR Bogoso Prestea’s mining leases due to poor working conditions and the company’s failure to address operational issues and meet its debt obligations.
Blue Gold’s statement reflects its commitment to contesting the termination through legal channels and ensuring that the interests of all parties involved are safeguarded. The company has reassured its employees that they should continue their work as the matter is addressed through the appropriate legal processes.
This development marks a significant turn in the ongoing discussions about the future of the mining operations in the Bogoso and Prestea areas. Blue Gold’s resistance to the termination signals a potential legal battle ahead, as the company seeks to protect its investments and maintain its operational rights.
As the situation unfolds, the focus will remain on how the legal proceedings will impact the mining sector and the various stakeholders involved. Blue Gold’s stance emphasizes the importance of adhering to legal procedures and ensuring that all parties involved are given a fair opportunity to present their case.
The outcome of this dispute will be closely watched by industry observers and stakeholders, as it could set a precedent for how similar cases are handled in the future. The commitment of both the Ministry and Blue Gold to resolving the issue through legal means highlights the complexity of managing mining operations and addressing the concerns of all involved parties.
