EOCO freezes Prestea-Bogoso mine transaction following investigations into process of acquisition by Heath Goldfields

The Economic and Organised Crime Office (EOCO) has initiated investigations into what it says was an alleged fraud in the acquisition of the Prestea-Bogoso Mine by Heath Goldfields Ltd in the mineral and mine industry.

Heath Goldfields Ltd in November 2024 took over the Bogoso-Prestea Mines from Future Global Resources (FGR), owners of Blue Gold International.

FGR had acquired the Prestea-Bogoso Mine from Golden Star Resources in October 2020.

But according to the Ghana Mine Workers Union (GMWU), due to a reported financial constraint, the mine ceased operations in December 2023.  

As of December 2023, the GMWU claimed operations of the FGR Bogoso Prestea Mine was inactive and the Volta River Authority and GRIDCo had even reportedly cut power to the mine’s operations due to the former’s indebtedness.

The government therefore in November 2024 approved the acquisition for Heath Goldfields Ltd, a local Ghanaian company, which then took over.

The government, through the Ministry of Lands and Natural Resources in a letter dated November 12, 2024 and seen by Graphic Online, approving the take over explained that, the move was to ensure the need to revamp the mine, secure the employment of workers, restore economic activities to the area and prevent any negative environmental impact arising from the closure of the mine.  

However, FGR has disputed the issue.

There are claims that the mine has been taken away from FGR who is financed and was five weeks away from listing on the New York Stock Exchange and it has been given to a Ghanaian owned company.

FGR has therefore issued a notice of dispute to the Ministry of Lands and Natural Resources, Minerals Commission and interested parties and planning to injunct the transaction.

One of the allegation is that, the Ghanaian company, Heath Goldfields Ltd was incorporated on February 6, 2024 and had a stated capital of GH¢10,000 at the time of incorporation.

The company's profile filed with the Registrar indicates that the principal place of business is in Accra and has an Accra digital address but the postal address is in Kumasi in the Ashanti Region [See the attachment below].

EOCO's investigation

It is following this and an allegation of fraud in the acquisition/transaction according to EOCO, that it has initiated an investigation and requested for documents [See copy of EOCO's letter attached below].

EOCO has directed the freezing of the transaction/acquisition process between the said companies until the investigations are completed.

EOCO in a letter dated December 23, 2024 and signed by the Executive Director, Maame Yaa Tiwaa Addo Danquah, a Commissioner of Police (COP) directed the Chief Executive of the Minerals Commission to provide it with information in relation to documents pursuant to section 19 of the EOCO Act.

The EOCO letter to the Minerals Commission, a copy of which has also been seen by Graphic Online directed the Chief Executive Officer of the commission to report to the Executive Director of EOCO with documents on the registration process in the acquisition of the Prestea-Bogoso Mine by Heath Goldfields Ltd and any other documents in relation to the transaction.

In relation to the directive to freeze the transaction and or acquisition, EOCO quoted Section 33 of the EOCO Act, 2010 (Act 804) which gives it power in that respect.

Ghana Mine Workers Union commend government as Heath Goldfields takes over Bogoso-Prestea Mines

In a recent statement published by the Ghana News Agency (GNA) on December 31, 2024, the Ghana Mine Workers Union (GMWU) of the Trades Union Congress for instance commended the government for deciding to issue the mining leases of the Prestea-Bogoso Mine to Heath Goldfields Ltd.  

The union said it was excited about the decision and pledged support and commitment to work with Heath Goldfields to turn around the Prestea-Bogoso Mine.  

The union's statement was signed by Abdul-Moomin Gbana, the General Secretary of GMWU. 

“The Ghana Mine Workers Union is now convinced that the Bogoso-Prestea Mines are in a good position to receive the needed capitalisation that will revamp the mines and reposition them on the path of growth and sustainability,” he stated.  

The union said it was deeply convinced that the government had diligently acquitted itself in accordance with the laws of Ghana to terminate the mining leases held by FGR/Blue Gold to Heath Goldfields.   

“The Ghana Mine Workers Union rejects all claims orchestrated by FGR/Blue Gold seeking to impugn and undermine every effort of the government and other relevant stakeholders targeted at revamping the Bogoso-Prestea Mines,” the statement added.   

It said statutory payments, including Tier 1, Tier 2, and the provident fund of the workers, have been in arrears since 2021.  

Writer's email: enoch.frimpong@graphic.com.gh 

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