Gov't takes over Prestea Gold Resources

The government has taken over the administration of Prestea Gold Resources (PGR), an underground gold mining company based in Prestea, with immediate effect.

The decision was taken owing to PGR's inability to service its growing debt, to a tune of 10 million dollars, Joseph Boahen Aidoo, Western Regional Minister disclosed at a meeting with striking workers of PGR at Prestea, on Wednesday.

He said high production cost per ounce of gold, payment of free electricity supply to Prestea township by PGR, among other things, have made the company to go bankrupt.

The Minister said the government had no funds to pay the debt and the only alternative left for it is to find an investor. Bogoso Gold Limited (BGL) had agreed to invest in PGR. It would pay the five months salary arrears of the workers in addition to their severance award, he explained.

Mr Aidoo said after the payment it would be deemed that the workers have been laid off, however, BGL would re-engage some of the underground mine workers to continue production while feasibility studies on the mine would be carried out.

After the studies, Mr Aidoo said, BGL would engage in both underground and surface mining. He told the workers that a committee would be set up to probe other allegations levelled against the previous administration. On January 21, workers of PGR embarked on a sit down strike to back their demand for the payment of their four months' salary arrears.