Rédaction Africa Links 24 with Ghanaian Times
Published on 2024-02-27 06:57:08
Future Global Resources (FGR) Bogoso Prestea Limited, the owners and operators of the Bogoso and Prestea mining leases, have recently signed agreements to restructure their ownership in order to ensure the long-term success of the mine. This transaction is still pending approval from the Ministry of Lands and Natural Resources in Ghana.
The Bogoso-Prestea mine has a rich history dating back to 1912 and has produced over 9 million ounces of gold. Despite its historical success, the mine has been facing challenges since 2017, accumulating over $200 million in losses. These losses have been owed to local suppliers, government agencies, and the workforce. In October 2020, a new owner, Future Global Resources (FGR), took over the mine and has invested significant amounts over the past three years to cover these losses. They have also worked with the local team to change the mining method underground and re-open surface mining.
However, the legacy debts predating FGR’s ownership, along with unstable industrial relations, have hindered the mine’s ability to attract further investment needed for stability and profitable production. To address these issues, the ownership of the mine is being restructured to bring in additional financing and revive the mine’s operations.
Executive Chairman of FGR, Mr. Andrew Cavaghan, expressed optimism about the restructuring, stating, “The Bogoso-Prestea gold mine has the potential to be a Tier 1 gold producing asset. We believe this transaction enables us to unlock this potential, delivering a multi-generational and sustainable business for our shareholders, our workforce, and the whole community.”
Further announcements regarding the transaction will be made in due course. The success of the restructuring will depend on securing approval from the Ministry of Lands and Natural Resources in Ghana. Once approved, the new ownership structure will pave the way for additional financing and operational improvements at the Bogoso-Prestea mine.
Overall, FGR is committed to turning around the fortunes of the Bogoso-Prestea mine and ensuring its long-term success. With a focus on sustainable business practices and community engagement, the company aims to create a profitable and stable operation that benefits all stakeholders involved.
In conclusion, the restructuring of ownership at the Bogoso-Prestea mine marks a significant step towards revitalizing the mine and securing its future as a key player in the gold mining industry in Ghana. With the support of additional financing and operational improvements, the mine is poised to return to full operations and achieve its potential as a Tier 1 gold producing asset.
Read the original article on Ghanaian Times
