Home General News Government grants conditional approval to mining company for restructuring and capital raise

Government grants conditional approval to mining company for restructuring and capital raise

Following deliberations, the Ministry for Lands and Natural Resources, led by Honorable Samuel A. Jinapor, Member of Parliament, issued a letter on 17th April 2024, stipulating a timeframe of one hundred and twenty (120) days for the company to secure the necessary capital, revamp its operations, and ensure full operational capacity at its mine.

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In a bid to facilitate the revitalization of a mining company and safeguard the interests of its workers, the Government has granted “Conditional Approval” to the company to undergo restructuring and raise essential capital within strict timelines.

Following deliberations, the Ministry for Lands and Natural Resources, led by Honorable Samuel A. Jinapor, Member of Parliament, issued a letter on 17th April 2024, stipulating a timeframe of one hundred and twenty (120) days for the company to secure the necessary capital, revamp its operations, and ensure full operational capacity at its mine.

In addition to capital-raising requirements, the company has been mandated to initiate payment of all outstanding salaries owed to its employees within two weeks, with a deadline set for 30th May 2024 to settle all arrears.

Crucially, the company is obligated to provide evidence of financial resources available for creditor payments and mine operations within the stipulated 120-day period, alongside ensuring full operational status within the same timeframe.

As part of the conditional approval, the company is directed to support the Government’s Community Mining Scheme by relinquishing portions of its concessions in Bogoso and Prestea for community mining initiatives. Failure to meet these conditions will result in the revocation of the conditional approval and termination of mining leases.

The Ministry has acknowledged a memorandum issued by the company to its employees on 24th April 2024, outlining plans for immediate salary payments and adherence to the conditions set forth in the conditional approval.

To monitor progress, the Ministry has scheduled fortnightly meetings with the company’s leadership, demonstrating its commitment to overseeing the revitalization process.

With confidence in collaborative efforts, the Ministry calls upon all stakeholders to support the government and the company in revamping the mine, safeguarding employment, and preserving the livelihoods dependent on mining activities.

Under the leadership of President Akufo-Addo, the Ministry of Lands and Natural Resources reiterates its dedication to transparent, efficient, and sustainable management of the country’s natural resources for the benefit of all Ghanaians.

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