Government to terminate agreement on Prestea mine
Government to terminate agreement on Prestea mine
Accra
(Greater Accra) 06 December 2000
The Ministry
of Mines and Energy said on Tuesday that the government has engaged Barnato
Exploration Limited (Barnex) and Golden Star Resources (JCI) in discussions to
resolve respective concerns in the Prestea Mine.
A statement
from the Ministry in Accra said the discussions followed the government’s wish
to have a mutual agreement for terminating existing agreements between it and
JCI/Barnex. Barnex is a South African mining firm and JCI is from Canada.
According
to the statement, which, was reacting to recent press releases by JCI/Barnex,
government selected the two firms when it divested its interest in Prestea
Goldfields Limited, a wholly owned subsidiary of the State Mining Corporation
in 1994.
"The
divestiture process gave special consideration to bids which had a plan for
continuing the existing underground mine. JCI/Barnex was selected because its
bid expressed a commitment as well as a capacity to sustain and improve on the
existing underground operations," the statement said.
JCI/Barnex,
however, gave notice in 1998 of their intention to end management
responsibility and sought to close down the underground operation but Ghanaian
employees negotiated with the government to continue operating.
The
statement explained that Government obtained the consent of JCI/Barnex, which
led to the formation of Prestea Gold Resources Limited (PGRL). But the previous
agreement allowed them (JCI/Barnex) to undertake other exploration activities
and produce a 'bankable' feasibility
report for any new mining project they were interested in. The Government
granted a request by the company to extend submission of the report in 1999.
"Barnex
have still not submitted any such report but have given every indication that
they will not proceed with any project in the concession area," it added.
The
statement said "it is in the light of the clear indication that JCI/Barnex
is not willing to proceed with any project within the Prestea concession that
the government has indicated...its wish to have a mutually agreed basis for
terminating existing agreements".
The Ghana
Government's main concern at this stage of discussion seeks to ensure that
certain environmental obligations arising from the surface mining operations by
Barnex should be addressed while revitalisation of the underground operations,
which occurred with the formation of PGRL should be sustained.
"It is
the expectation of (the) government that a mutually acceptable basis for
terminating the agreement with JCI/Barnex relating to the Prestea Mine will be
established soon," the statement added.
GRi…/