Ghana Bauxite Company won't fall down, govt. assures

The West African nation's govt. has assured the workers of Ghana Bauxite Company (GBC) at Awaso in the Bibiani-Anhwiaso-Bekwai Municipality in the Western North Region towards its commitment to keep the mining organization running.

George Mireku Duker, Deputy Minister of Lands and Natural Resources said: “No worker will be thrown under the bus. With the plan we have for the company, we may even end up employing more.”

The minister stated this when he led a government delegation on a fact-finding mission to the bauxite mining company at Awaso.

The visit was entailed due to the recent agitation by the workers over the panic of losing their jobs following a tough decision by the Bosai Minerals Group from China, the strategic investor of the GBC to sell its stakeholding and pack out.

The delegation to Awaso was teamed up by the Western North Regional Minister, Richard Obeng; the Chief Executive Officer (CEO) of the Minerals Commission, Martin Kwaku Ayisi; the CEO of the Ghana Integrated Aluminium Development Company (GIADEC), Michael Ansah, and the Western North Regional Police Commander, Deputy Commissioner of Police (DCOP) Ernest Akrasi Kirk Mensah.

However, the delegation held a closed-door meeting with the leaders of the workers.

The Chinese firm, Bosai Minerals Group, which holds an 80% stake in the company, has written to the government about its intention to sell its shares, and per the agreement between the two, the government must respond by the end of August 2021.

Minister Duker said: “The government was considering all options to protect the interest of the workers, adding that whatever decision was taken would be in the supreme interest of the country.”

“If, in the end, we feel it will not be in the interest of the taxpayer for the government to run the company, we will offload it to a third party,” he said.

The Minister further added: “Discussions were still ongoing with the strategic investor, adding that in the event the investor had to pack out, the government would ensure that it fulfilled all the conditions under the law.”

The major concern the workers of GBC raised was the payment of severance packages when the strategic investor packs out.

Richard Ayiehu, Branch Secretary of the Ghana Mine Workers Union (GMWU), GBC said: “The workers were demanding a severance package because the company was set to go into a development stage when the lifespan of the current mine site ends in six months.”

Richard appealed to the Ghana govt. to ensure that the strategic investor paid severance packages to the workers before leaving.

The Bosai Minerals Group announced its decision to pull out of the country over what it described as a deliberate attempt by government agencies, spearheaded by GIADEC, not to have the GBC’s mining lease, which expires on January 9, 2022, renewed.

J. K. Fang, General Manager, GBC said: “The company applied for a renewal of its mining lease in January 2020, but as of now the application was still pending.”

“We had managed the GBC very well, taking it from a loss-making company to a profit stage.”

Fang rejected GIADEC statement that the company made profits only in 2019 and 2020.

“Apart from 2019 and 2020, Bosai ensured that the GBC also made profits in 2015 and 2017 and had consistently been reducing the $11 million loss it was making when the strategic investor took over in 2010,” Fang added.

The Bosai Minerals Group successfully acquired GBC from the global mining giant Rio Tinto in 2009.

source https://www.alcircle.com/news/ghana-bauxite-company-won-t-fall-down-govt-assures-70236