We Won't Abandon Underground Mining -BGL

The general manager of the Bogoso Gold Limited (BGL), who also controls 45 per cent shares in the New Century Mines of Prestea, Mr. Peter Claringbull, has told CHRONICLE that his company has not conceived any idea to abandon the Prestea underground mines either today or in the near future.

He has, therefore, called on the people of Prestea to disregard rumours circulating in the area that his company has got an interest only in surface mining, in the town, but not to revive the underground mines that were being operated by Prestea Gold Resources (PGR), who are now partners in a joint ventureship with the BGL in New Century Mines.

Mr. Peter Claringbull, a South African born mining engineer, who was contacted by Chronicle to react to a number of issues being raised by the people of Prestea, especially the ex-PGR workers, about the intended surface mining operations stated that under the agreement signed between his company, the government of Ghana and PGR, BGL has been mandated to put the underground mines under care and maintenance.

Flanked by Mr. Sam Agyeman, project manager of the New Century Mines, Mr. Claringbull said in pursuance to the agreement BGL has been spending $120,000 every month to pump water from the underground mines to prevent flooding.

Giving the breakdown, he said $50,000 of the amount goes into other logistical support.

According to him, if they have not got permanent interest in the Prestea underground mines, BGL would not have been pumping such huge sums of money to ensure the safety of the mines pending feasibility studies which are currently ongoing to determine the quantity of ore deposits underground.

A section of ex-PGR workers who have been fighting against what they have described as a dubious joint venture agreement between PGR and BGL last week "invaded" Chronicle offices in Takoradi to level a number of allegations against BGL.

Among the allegations was a claim that they had not been paid their full entitlements when they were asked to go home, a claim which was vehemently denied by Mr. Claringbull.

The ex-PGR workers also denied an assertion by BGL that 258 of their colleagues had been employed by them. They alleged that BGL had engaged some soldiers to terrorise them.

Mr. Claringbull, who took this reporter to the shaft site of Prestea mines to interview some of the workers to ascertain whether or not they were ex-workers of PGR, said the list of the 258 ex-PGR workers they had employed to pump water from the underground mine was prepared and sent to him by PGR management.

Besides this, he insisted that all contractors who have been awarded various contracts by BGL should employ people only from Prestea and its environs to boost economic activities in the area.

When asked to comment on whether more of the remaining ex-PGR workers would be employed should their feasibility study establish they have enough gold ores underground, Claringbull said that would depend on the quantity and the number of years it would be mined.

He made it clear that should it even become possible for them to employ more of the ex-workers, their requisite skills would be taken into consideration.

According to him, since BGL took over the management of Prestea mines, the local economy had improved tremendously

When asked how they were going to finance the underground operations since PGR who also has 45 per cent shares are currently insolvent, Claringbull said should they hit enough gold underground, all the money BGL has pumped into the maintenance of the mine among others would be turned into equity, which means that their shares might likely go up from the current 45 per cent.

BGL, however, controls 90 per cent shares in the surface mining operations, which they intend pursuing in the Prestea area because PGR was only granted licence to do deep shaft mining.

The Prestea mines, which started operations in the late 1870s, has so far produced 9 million ounces of gold.

This makes it the second most productive gold mining area in the history of Ghana after the Obuasi mines.