Minister Shocked!

THE WESTERN Regional Minister, Hon. Joseph Boahen Aidoo, has called on the ex-workers of the Prestea Gold Resources (PGR) and their management to pay back the millions of dollars they collected from the Bogoso Gold Limited (BGL) to enable the government to abrogate the agreement signed between the two companies for BGL to carry on surface mining operations in Prestea.

The worried-looking regional minister told a host of journalists at the regional office in Sekondi, last Friday evening, that he had been shocked by the antagonistic posture that had been adopted by the PGR workers towards the agreement signed between the two mining companies because it was the same workers who came and appealed to him for the management to take over the company.

He has consequently cautioned that should the PGR workers fail to pay back the amount they took from BGL as he has asked them to do, and yet still go ahead to frustrate the surface mining operations by BGL in the area, his administration would deal ruthlessly with any one caught because he cannot sit down for an investor to lose his investment in such a way.

The seemingly emotionally charged regional minister further told the reporters that under the agreement signed between PGR and BGL, the former is not under any obligation to invest in the Prestea underground mines as the people are alleging.

The only obligation, he continued, is the maintenance of the underground mine, which they are currently doing.

Giving a background to the Prestea issue, which is threatening security in the area, Hon. Aidoo said in 1994 the then government divested the Prestea mines and issued a 30-year lease, dated October 13, 1994, to Barnex, a South African mining company.

After having invested $40 million in both exploration and supporting underground losses, Barnex decided to close down the underground mine in 1998 and laid off all the workers.

The minister further said in December, the same year, the government granted PGR the permission to continue operating the underground mine, after having put together the severance money they took from Barnex as their working capital.

He said because the production cost was very high, it became clear that PGR management was finding it very difficult to renew the underground mine, but they hid this from the workers.

They rather resorted to borrowing from BGL to pay the workers with the understanding that BGL takes over the surface mining operations in the PGR concession.

According to the minister, when the NPP government took over the reins of government in the country, they declared PGR technically insolvent, having accumulated a debt of $10 million.

He said following the protest from the PGR workers, the NPP government finally reached an accord with both BGL and PGR regarding the rescue plan for the latter company.

Hon. Aidoo said it was stated in the agreement that due to PGR's continuing under-performance, and its rising debt, the underground mine cannot be considered as a growing concern.

It was, therefore, decided that it should be suspended and put under care and maintenance.

BGL was also mandated to advance to PGR an amount of $1.6 billion to enable the latter pay its workers their five months salary arrears.

BGL was further mandated to advance $0.8 million to PGR to allow it to offer a negotiated severance package to all employees and the balance used to settle local creditors upon commencement of mining at the procession plant area.

According to the regional minister BGL has met all these conditions spelt out in the agreement, which resulted in the payment of five months salary arrears plus two months pay to all the PGR workers.

The regional minister regretted that after having put severe pressure on him to get their salary arrears which they have now received, the workers and some people who appear to have vested interest in the mine have turned their back against the whole agreement and even trying to stop BGL from going ahead with the surface mining in the area.

He disclosed that PGR workers and a section of the townsfolk are even planning a violent street demonstration against the whole agreement, adding that they have even planned to attack some important personalities in the area during the demonstration.

Unconfirmed reports reaching Chronicle from Tarkwa indicated that some of the people are planning to plant dynamite at some vantage points in Prestea area to cause destruction to life and property.

The regional minister said already he has negotiated with BGL to employ some of the displaced workers from Prestea, but if they are not satisfied and they still go ahead to cause destruction to life and property in the area, his administration would deal ruthlessly with anyone caught by the security agencies, who are already on high alert.