The Ghana Mine Workers Union (GMWU) is calling for a joint venture between the government and Gold Fields for the Damang Mine, rather than a full government takeover.
According to the Union, the state may lack the capital needed to properly invest in the mine—potentially hindering its growth and expansion.
General Secretary Abdul-Moomin Gbana made the remarks in an exclusive interview with 3news’ Labour Affairs Correspondent, Daniel Opoku, in Accra on April 17.
Since government’s decision not to renew Gold Fields’ mining lease for the Damang Mine, the issue has stirred debate among mining experts.
It wasn’t until the Lands Ministry addressed the media that some clarity emerged.
On April 14, the GMWU called on government to be transparent about its decision not to extend the lease.
Two days later, on April 16, the Minister for Lands and Natural Resources, Armah Kofi Buah, cited concerns over capital investment by Gold Fields in the Damang operation. Government has now confirmed plans to nationalize and take over management of the mine.
But that move isn’t sitting well with the Ghana Mine Workers Union.
Mr Gbana says he fears government may lack the financial capacity to sustain and grow the Damang Mine.
“It will require capital injection into the mine that is why I am saying that if we don’t manage it smartly, we might run the risk of not making the very best out of the Damang mine. If you don’t have capital investment you will be pretending to be running the mine and that is not good for us.
“Already we know the government is saddled with a lot of challenges, even payment of public servants, we all know the current conditions we find ourselves. If government is going to be at the fore front driving the Damang mines to turn around I can assure you that it will require a lot of effort to do so,” Mr Gbana noted.
He, instead, proposed a joint venture between government and Gold Fields to ensure continued investment and stability.
“We can always leverage opportunities available to us and Gold Fields in my view is a good opportunity. We can get to the tables with Gold Fields and have some arrangements that will benefit us,” Mr Gbana suggested.
While Minister Armah Kofi Buah has assured workers that jobs and salaries will be protected, the Union is asking for more than promises.
“If the government is saying the workers will not lose their jobs, workers will not lose their income on the basis of the plan that they have, but as it stands now there is a lot of work that ought to be done to guarantee that workers will not lose their salaries in the foreseeable future,” he noted
Meanwhile, the Ghana Mine Workers Union has already met with the Minister to discuss broader concerns within the mining sector.
