Samuel Abu Jinapor (right) with some of the company’s officials
CHINESE GOLD mining firm ChifengJilong Gold Mining Limited has officially taken over Golden Star Resources (GSR), Wassa Mine in the Western Region.
GSR Wassa mine has been sold to the Chinese mining company which is listed on the Shanghai Stock Exchange and has a good track record as a safe and sustainable mine operator.
The Chinese mining firm is to bring in the necessary investment to develop the mine to optimise production and realise the mine’s full potential.
The mine was originally operated as a small scale mining site, until Satellite Goldfields Limited acquired it in 1993, before transferring their interest to Golden Star Resources in 2002.
At the end of 2020, Golden Star Resources had produced about 2.4 million ounces (oz) of gold, since its acquisition.
The transition from open-pit mining to underground mining in 2015, marked a major milestone in the life of the mine, with total production increasing from 104,000 oz, in 2016, to 165,000oz in 2020.
With an additional 11 years of mine life, the mine has the potential to produce about 1,000,000oz of gold over a six-year period, with the right investment.
At the handing over ceremony at Wassa Akyempem in the Western Region, Lands and Natural Resources Minister, Samuel Abu Jinapor, said as part of the conditions for taking over the mine, Chifeng has agreed to respect and honour all existing contracts of Golden Star Resources.
“They include employment contracts and collective bargaining agreements, entered into with employees of the mine,” he said.
He assured all the workers that government will work with the company to ensure that the rights of all employees were protected.
He said where necessary, appropriate severance packages will be paid in accordance with the laws of the country, and the existing collective bargaining agreements.
He noted that to ensure that the country’s mineral resources were utilised for the benefit of the good people of Ghana, government has charged Chifeng Jilong to list on the Ghana Stock Exchange.
The former Chief Executive Officer of Golden Star Resources (GSR), Andrew Murray, explained that the sale of the mine to the new investor would ensure that the mine is developed to realise its full potential which would be of a great benefit to all stakeholders.
Shadrach Adjetey Sowah, Managing Director for GSR, Wassa, was hopeful that the Chinese mining firm will build on the solid foundation workers of GSR had laid.
Chen Zhinyong, Board Member and Executive President of Chifeng Group and New chairman of GSR, said Chifeng has a proven track record as a responsible operator and is well positioned to turn the Wassa mine into a world class mine.
Tiehe Chen, Executive President of Chifeng Group and New CEO of GSR, indicated that the new firm intends to invest significant financial and human capital into Wassa mine to realise its full potential.
FROM Emmanuel Opoku, Wassa Akyempim