Ghana Mine Workers Union Calls for Termination of Future Global Resources' Gold Mine Lease

The Ghana Mine Workers Union, representing 15,000 members, is seeking the termination of the mining lease held by Future Global Resources Ltd. (FGR) for the Bogoso-Prestea gold mine. The union has raised concerns over FGR's financial capacity to effectively invest in and operate the mine since acquiring it in 2020.

FGR's management of the Bogoso-Prestea mine has faced several challenges, including a halt in mining activities since December 2023 due to nonpayment of energy bills. Gold production at the mine has dropped significantly from 150,000 ounces annually to just 60% of that figure under FGR's ownership. The union argues that FGR has failed to comply with the terms of the lease.

Why this matters: The potential termination of FGR's mining lease and sale of the Bogoso-Prestea gold mine could have significant economic and employment implications for the region. The union's actions highlight the importance of responsible and financially stable management of Ghana's mineral resources.

The Ghana Mine Workers Union plans to hold demonstrations in Accra to press the government for action. Originally scheduled for April 15-18, the picketing at the Ministry of Lands and Natural Resources has been rescheduled to April 25 due to the unavailability of police personnel. The union is demanding that the Minister revoke FGR's mining lease so the Bogoso-Prestea mine can be put up for sale.

The union's call comes after the Attorney-General & Minister of Justice confirmed the recommendation of the Mineral's Commission to revoke the mining lease. However, the Ministry of Lands and Natural Resources is reportedly delaying the necessary action. The union argues that the termination of the lease is justified due to FGR's lack of financial resources to properly manage the mine, which has led to the layoff of all workers.

In a statement, the Ghana Mine Workers Union emphasized the urgency of the situation, stating, "Future Global Resources does not have the financial capacity to continue operating the Bogoso-Prestea gold mine. The government must act swiftly to terminate the lease and find a new, financially stable operator to safeguard the livelihoods of the workers and the economic interests of the region."

Key Takeaways

• Ghana Mine Workers Union seeks termination of FGR's Bogoso-Prestea mine lease.
• FGR faces challenges, including halted mining and reduced gold production.
• Union argues FGR lacks financial capacity to properly manage the mine.
• Termination could have significant economic and employment implications.
• Union plans demonstrations to press government to revoke FGR's mining lease.