Work resumes at Bogoso mines as court case against GSR ceases

Work resumes at Bogoso mines as court case against GSR ceases

Work at the Bogoso-Prestea mines has re-commenced • Work at the FGR BP mines has resumed

• This has come about after an agreement between managers and workers was arrived at

• This will also mean that a court case against former owners, Golden Star Resources, will come to an end

Work at the Bogoso mines has returned to normalcy after an agreement between the Future Global Resources Bogoso-Prestea (FGR BP), the exempt staff and the workers’ unions was reached.

Also, this new agreement means that an ongoing court action against the Golden Star Resources (GSR), who are the previous largest shareholders of the mine, will now cease.

Following the sale of the mine in September 2020, a series of strikes by workers, took place at the FGR Bogoso Prestea mine, leading to the management intervening to assist the disgruntled employees.

This was contained in a joint statement from the extraordinary Joint Standing Negotiation Committee (JSNC) set up to look into the expectations of the employees for severance payments, “an expectation created by the same severance being granted during the previous sale of the mine, but had become increasingly distracted after many failed attempts of reaching a settlement with the previous owners of the mine, Golden Star Resources (GSR).”

The statement continued that, “While GSR were invited on several occasions to attend the extraordinary meeting of the JSNC, they declined. As a result of this positive agreement being reached mining activity has re-commenced peacefully. In addition, and to the benefit of employees, Unions and GSR, the ongoing court action against GSR will now cease.”

In 2020, the Golden Star Resources Ltd entered into a binding agreement for the sale of its 90 percent interest in the Bogoso-Prestea Gold Mine to Future Global Resources Limited (“FGR”) for a purchase price of up to US$95 million.

Under this transaction, there was a purchase price of US$55 million with a further contingent component of up to US$40 million.

The full communique from the JSNC is as follows:Following the sale of the Bogoso Prestea Mine on September 30th 2020, Employees under the previous owner, Golden Star Resources (GSR), had expected payment of severance prior to the completion of the transaction. This was, however, not met which consequently led to a series of industrial actions and a lawsuit instituted against GSR Bogoso Prestea Limited, albeit not successful in the first instance. The justice of a High Court […]

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