Golden Star Wassa Limited has suspended its operations at the Benso site in the Western Region for the next three months following the recent attack on the company by some illegal miners.
According to the company, the attack by the illegal miners will affect investor confidence and their production levels.
On Thursday, March 16, there was an attack by some illegal miners at the company’s site in Benso where 12 vehicles, including an ambulance, were torched.
One person was reported dead while four others sustained injuries.
The illegal miners were said to have invaded a concession of Golden Star, ostensibly to cart away mined dust to prospect for gold, an attempt which was resisted by a team of security men of the mining firm and the police.
The Group Corporate Affairs Manager of Golden Star Wassa Mine, Mr Gerard Boakye said a number of them were arrested, but could not immediately tell their number.
He, however, confirmed the arrest and said the culprits have since been arraigned in Tarkwa when speaking in an interview on JoyNews’ AM Show on Friday.
To this end, the Ghana Chamber of Mines has since condemned the attacks by the illegal miners which left some persons injured and properties destroyed at the Benso concession.
Chief Executive Officer of the Chamber, Mr. Sulemanu Koney, described the attack as a “disappointing watershed” in Ghana’s history.
He indicated that the upsurge, if not checked, could erupt terrorist-linked attacks as seen in some mines within the West African sub-region.
“Since the hike in such attacks has coincided with an upsurge in terrorist-linked attacks at mines in other mining jurisdictions in the sub-region, the government must prioritize the security of the mines,” Mr Koney said.
But speaking to the media after a visit to the company’s site to know the extent of damage by the illegal miners on Thursday, Mr Boakye said the situation has a knock-on effect in terms of the company’s contribution to the national economy, and statutory payments would all go down.
“One major thing that comes to mind straight is that last year, most mining companies contributed 5000 ounces to our reserves. This year, we saw the new regulation or sort of by-law that we need to contribute 20 percent of our annual production to the gold for oil stuff, which will reduce our expenditure our use of foreign exchange and improve the value of the cedi. So, look at the value chain here now.
“Now, if Golden Star, one of our operations, which contributes roughly about a third to our total production has to stop operating for about three months, that should tell you that it is a real cost to the whole process, which we’re losing out.
“It cost us a lot to restart mining here; a lot of costs which we haven’t even recovered 50 percent of it. Now, we have been set back by another three months; that is also cost,” Mr Boakye said.
The Paramount Queen mother of Wassa Fiase, Nana Abena Kunadjoa II, who was speaking on behalf of the Traditional leaders condemned the attack by illegal miners on the company.
She said those who were involved in such acts are not indigenes of the town but settlers.
Nana Abena Kunadjoa II asserted that Golden Star Wassa Mine has had a good cordial relationship with the community and it was unfortunate that there have been some unscrupulous people in the town.
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