Investigations by the Minerals Commission into the operations of the Xtra-Gold, a mining firm in the Atiwa District of the Eastern Region, indicate the company is engaged in widespread illegality.
Among others, the mining firm is cited for contracting individuals and other companies to work in its Banso concession without environmental permit and in breach of laid down rules.
The commission is therefore recommending sanctions against Xtra-Gold while appropriate steps are taken to regularize its activities.
Minister of Lands and Natural Resources, Mike Hammah, ordered the investigation, following a petition by chiefs and people of Apampatia.
The report compiled in September this year into the alleged malpractices of the mining firm followed a petition from the chiefs and people of Apampatia to the Minister of Lands and Natural Resources.
The petitioners wanted the Minister to release the concessions for small- scale mining by youth in the area.
The report compiled in September stipulates all land already sold or intended for sale by Xtra-Gold be retrieved and re-allocated by the Minerals Commission.
Nhyira FM investigations revealed Mr. Hammah’s immediate predecessor, Collins Dauda, granted Xtra-Gold lease on January 6, this year pending receipt of an environmental permit before it could start operations.
Contrary to the Mining Act, Act 703 of 2006, the company has sold the land for illegal mining, commonly known as ‘galamsey’.
Section 14 sub-section 1 reads ‘a mineral right shall not in whole or in part be transferred, assigned, mortgaged or otherwise encumbered or dealt in, in a manner without the prior approval in writing of the Minister, [Lands and Natural Resources] which approval shall not be unreasonably withheld or given subject to unreasonable conditions’.
According to the report, however, Xtra-Gold has sold land to individuals named only as Emma, Oti, Nana Yaw, Latif Mumuni and Company, among others.
In the case of Latif Mumuni and Co, per the one year agreement signed on 28th August 2010, and due to expire on 27 July 2011, Xtra-Gold received GHS28,200 as a consideration for signing a contractor on Pameng concession.
James Longshore and Nana Yaw Koranteng, General Managers of Xtra-Gold and Latif Mumuni and Co, respectively, signed for their companies, with one Yaw Twum Sakyi as witness.
Xtra –Gold also violated requirements of Section 18 of the Minerals Act of 2006 which requires the company to acquire forestry and environmental permits before it begins operations.
18. (1) “Before undertaking an activity or operation under a mineral right, the holder of the mineral right shall obtain the necessary approvals and permits required from the Forestry Commission and the Environmental Protection Agency for the protection of natural resources, public health and the environment”.
Ironically, more than two months after completion of investigations, the Minister is yet to receive the report.
Information monitored at the office of the Minerals Commission indicates the document cannot be traced.
Another report dated November 10 and submitted to the Ministry and the Eastern Regional Minister indicted Xtra-Gold for collecting 19 per cent of gold produced daily by beneficiaries of the illegal land deal.
The report signed by the District Chief Executive for Atiwa, Emmanuel Atta Twum, says though the company does not engage in any direct mining, it feeds on galamsey operators.
The youth of Pameng recently staged a demonstration and blocked mining sites because Xtra-Gold failed to pay 1 per cent of its share of gold it promised the community.
It took the intervention of the District Security Committee to resolve the stalemate.
Meanwhile, officials of Xtra-Gold have declined comment on the report and other issues raised by the investigative team.
When the matter came up for discussion on Adom Dwaso Nsem last week, officials still did not respond.
They only submitted a document which they say explains galamsey activities at a spot close to Okyehene’s palace.
The document signed by the company’s Director, Victor Nkansa, expresses sympathy with Okyehene for having sleepless nights as a result of activities of illegal miners.
According to Mr. Nkansa, the company has contracted Sulley Mining Group to quickly mine on the remaining small patches of land in its Apapam mining concession, and reclaim the degraded land. Eight suspected illegal miners arrested in the concession are facing prosecution in a Koforidua High Court.
The Apapam Mining Concession covers Kibi, Adadientem and Apapam.
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