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Business News of Thursday, 6 August 2015

Source: The Inquisitor

Zoomlion fleece Akwatia

Great Consolidated Diamonds Great Consolidated Diamonds

In 2011 when Zoomlion (Gh) Limited took over Ghana Consolidated Diamond and changed its name to Great Consolidated Diamond amidst a pomp and pageantry kind of ceremony, the people of Akwatia felt life was returning to the good old days.

Four years after witnessing that momentous occasion, people of Akwatia, especially workers of the defunct GCD, have come to the realization that they have been ripped off by the new owners of the once vibrant diamond mine in the Eastern Region.

Great Consolidated Diamond, has not been able to commence operation as it promised since 2012.

Instead, the concession that was part of the acquisition of the mine is being sold out to small scale miners.

In presentation of the 2015 Budget Statement to Parliament in 2014, it was captured that Zoomlion has not been able to make full payment of the mine it acquired from the Divestiture Implementation Committee.

The Great Consolidated Diamond has dissipated the concession at Kobiriso and Akenten to the anger of the people of Akwatia.

Of the hundreds of workers whose appetite for serious business were wetted with the takeover by Zoomlion, only 40 have been absorbed by the new managers of the mine.

These 40 workers are also only serving as security personnel, who are watching over virtually nothing.

The angry workers are saying that government should step in, and force Zoomlion, headed by Mr. Joseph Siaw Agyepong, to do the right thing.

According to the skeletal workers, there are no signals that operations would start anytime soon.

In a strong-worded petition to the Office of the President gleaned by The Inquisitor, the workers claim they have been short-changed by Mr. Agyepong's company.

They said since they were engaged by Great Consolidated Diamond, their conditions of service have not been changed.

“We were engaged when Great Consolidated Diamond took over in 2011 and, we have not enjoyed any better conditions of service,” they said in the petition.

In the petition dated May 15, 2015, the workers further said that Zoomlion should be bold enough to tell the people of Akwatia that he could simply not handle the mine.

“Great Consolidated Diamond Company has betrayed the trust of the people of Akwatia, especially, ex-workers of the mine, because we felt that the company was coming to offer something better to us,'' they said.

They said in the petition that the Member of Parliament (MP) for the area has also let them down, as he seems not to be doing anything about what is happening to the mine.

“Our MP once told some people that once the mine is in private hands, the owner can do whatever he or she likes,” they said.

Amazingly, the MP, Alhaji Baba Jamal, is also the Deputy Minister of Employment and Labour Relations.

When The Inquisitor contacted Alhaji Jamal over the issue, he would not talk about the matter.

Sounding unconcerned, he told The Inquisitor, once the Akwatia people and the workers are complaining to a newspaper organization; the paper should deal with them.

Zoomlion Responses

When The Inquisitor made contact with Zoomlion Company over the issues, it parried the main concerns raised by the inhabitants of Akwatia and workers of GCD.

The paper reproduces the responses it received from Zoomlion unedited:

About the Divestiture of the Ghana Consolidated Diamonds

The agreement for the purchase of Ghana Consolidated Diamonds was agreed with the Divestiture Implementation Committee (DIC).

We assure you that we followed due process, guidelines and regulations provided to regulate the sale and purchase of divested state companies We are determined to use this opportunity to turn around this company to make it a vibrant and profitable organization that will once again create jobs and impact livelihoods of the communities in the company's jurisdiction

On-going activities to bring the mine back to life

We are happy to have been given the opportunity to challenge our expertise to rejuvenate GCDGL and unearth its potentials.

Indeed, since we took over the mine in 2011 a lot of investment has been made on our part to resuscitate the mine and bring it up to international standards.

GCDGL has also focused on meeting the necessary regulatory, engineering and restructuring works necessary for bringing the old mine back to life.

All local and international certifications that are required to facilitate the operation of the mine as a world-class mine have been regularized Our goal is to regularize, modernize and upgrade GCDGL's mining credentials and certifications to internationally accepted levels. This is an important step in the successful operation of any viable mine.

As part of engineering works ongoing, GCDGL has replaced many old and obsolete equipment and machinery at the mine. As successful mining is largely dependent on equipment and machinery, we are investing heavily in upgrading equipment on the mine to achieve production successes.

Our current activities regarding the mine go beyond the mine itself. We are excited about what we are also achieving with the former employees of the mine, some of them have been successfully re-engaged. As part of our resettlement plan for retrenched employees, GCDGL has supported many former workers of the mine and residents of surrounding communities to undertake alternative sources of livelihood.

We however believe that putting the mine on the right footing to generate taxes for government, create employment and support the surrounding communities should be of interest to you Since we acquired the mine in 2011, Great Consolidated Diamonds Ghana Limited has followed a five-year development plan to bring the mine on full stream.

Milestones under this plan include;

Undertaking feasibility studies which is now completed

Re-evaluation of the resource rehabilitation of offices and accommodation, rehabilitation of the plant for processing of Tailings Developing regulations and structures for product purchase from small-scale diamond miners etc.

In the community, efforts are ongoing to rehabilitate the Akwatia Government Hospital to serve the town and its surrounding communities.

The last phase of the plan is to bring the entire mine on-stream and undertake development of farms and other non-mining projects. Our commitment to turning the mine around for the benefit of the communities and other stakeholders

We wish to state that we are excited to have had the opportunity to turn the company around

We expressed our interest in the company at a time when it had been closed down and was under care and maintenance.

It will interest you to note that the Company was put on divestiture in 1987 and after numerous unsuccessful attempts by the GoG to sell, it was closed down in 2007

In 2011, the GoG accepted the bid by Great Consolidated Diamonds Ghana Limited to buy the company.

We believe that such a great national asset can be turned around but will require a lot of investment to achieve that.

We are determined to make the mine successful and we are working towards that.

Since its acquisition, the company has undergone tremendous changes and has commenced the journey to being the leading homegrown and sustainable mining concern operating to world-class standards.

We remain committed to our values of Responsibility, Integrity, Excellence, Innovation and People-centered which guide the way we operate.

We also remain committed to maximizing land-use to benefit our Business, the Communities and other Stakeholders during and beyond mining.