Security Force Retakes Mining Concession

Military and police personnel who were dispatched to Prestea by the Western Regional Security Council (WRSEC) to ensure law and order in the mining town have now succeeded in taking absolute control of the disputed mining concession, which was taken over by the local residents.

Soon after last Tuesday's public hearing, which turned into violence, the people of Prestea went and seized the disputed mining concession from Bogoso Gold Limited (BGL), claiming that BGL had not been given any permit to carry out surface mining activities in the town.

This compelled the authorities to quickly move the military to the town. They succeeded in taking over the concession from the "rebels" after initial resistance from the people.

The Tarkwa district police commander, Chief Superintendent W. B. Baiden, told Chronicle on phone last Tuesday that after retaking possession of the concession, they are now providing 24-hour guard services at the place to ensure that the people do not move into it again.

When asked whether they have made any arrests after the smashing of the Member of Parliament (MP) for the area's car windscreen and that of Daily Graphic's, Baiden said a number of names have come up but they have not made any arrests because the people, apparently thinking that the police would come chasing after them have ran away.

He, however, said they had intensified investigations and would at the appropriate time arrest all those who were involved in the smashing of the windscreens of the two cars, belonging to Hon. Albert Obbin, MP for Prestea, and the Graphic Communications Group.

Though the people had wanted to lynch Hon. Albert Obbin, who is their MP, for reasons which are difficult to understand, he escaped unhurt due to the heavy presence of the military at the public hearing which was organised by the Environmental Protection Agency (EPA) to solicit views from the people about the intended surface mining in the Prestea township.

The MP, who was seen shivering after his near lynching experience, was later sandwiched between two of his bodyguards in his car, which had its windscreen smashed in the attack and driven to Bogoso, his hometown, which is about 20 kilometres away from Prestea.

Ever since BGL won the rights to do surface mining at Prestea, the latter has not known peace with the local residents accusing almost every minister who is connected to the deal.

The government was compelled to give the concession to BGL for surface mining because Banex, a South African mining company, who hitherto were the owners of the Prestea mines, were going to take the government to court to claim a whopping $12 million for unlawful abrogation of contract.

The then NDC government took the concession away from Banex after the latter had decided to close down the underground mine, claiming they were operating at a loss.

The concession was then given to Prestea Gold Resources (PGR), a company which was formed by ex-workers of Banex to continue operating the underground mine. The then government, however failed to pay Banex their rights to the concession.

When the New Patriotic Party (NPP) government came to power, Banex had wanted to go to court to claim the money but BGL quickly came in to pay the money, which automatically transferred the rights to them.

BGL was, however, mandated to do feasibility studies on the underground mine which was being operated by PGR to see if it could be reactivated.

So far BGL has pumped over $1 million dollars into the care and maintenance of the underground mine in addition to $50,000 which it spends every month on wages and salaries to the over 200 workers who are currently working on the underground mine shaft.

This means that if BGL is to pull out from Prestea, the government will have to cough up the $12 million it paid to Banex, pay the $1 million it has so far spent on the care and maintenance of the mine in addition to the $50,000 monthly wages it has so far paid.

The big question is can the government cough up the nearly $14 million if BGL is to stop the intended surface mining in the town?