…seals security bond with FN Bank
By Juliet Aguiar DUGBARTEY, Damang
The reclamation cost for Abosso Goldfields Limited (AGL) Damang Mine was estimated at US$24.99million as of December 31, 2023. Against this backdrop, AGL has posted a security bond of US$25million, which includes US$12.3million in cash and a US$12.7million bank guarantee from First National (FN) Bank.
The security bond means that in the unlikely event of the mine failing to rehabilitate disturbed lands, the state can fall on the US$25m bond to carry out the rehabilitation.
The mine also continues to set aside US$200,000 cash every month with the intention to improve the bond’s cash component and reduce the bank guarantee amount every year.
Rehabilitation
Currently, 1,455ha representing 18 percent of Damang’s concession of 8,111ha is disturbed. Of the disturbed area, 523ha representing 36 percent has so far been reclaimed.
As the first mine to ever sign the Reclamation Security Agreement (RSA) with government and post a reclamation bond in November 2000, AGL has strived to show commitment in consequent reclamation and requirements of the RSA.
The RSA is to ensure that the company reclaims all disturbed areas at end of the mine life. As part of measures to ensure that adequate funds are readily available at closure for reclamation, AGL continues to update the reclamation bond posted with the state through the Environmental Protection Agency.
Open House
At the 2024 Open House and Rehabilitation Plan for the Mine at Damang in the Prestea Huni Valley municipality of the Western Region, Sampson Arthur, Operations Manager-AGL, said the mine’s rehabilitation activities continue to cover tailings storage facilities, waste rock dumps and all other disturbed areas.
Rubber plantation expansion, he said, continues to cover these areas as well as other sites disturbed by illegal miners.
“This year, we will pour our first produce from the more than 50 hectares of rubber farm. We will continue to expand and develop new areas for the rubber plantation within disturbed areas. I am very confident of the prospects and positive impacts of these activities in our local communities, and use this opportunity to call for your continuous support and cooperation with Gold Fields on this,” he said.
John Kwasi Adingelah, Environment Unit Manager-AGL, provided an overview of the rehabilitation on mining lease, disturbed and active rehabilitation areas, processes involved such as the earthwork preparation and revegetation as well as maintenance activities.
He mentioned deliberate felling for firewood, illegal mining activities and cattle-grazing on rehabilitated areas as some challenges faced at the rehabilitation areas.
“This uncontrolled practice disturbs ground cover and establishment of flourishing trees. It has a likelihood of hampering the health of established wood-lots,” he said.
There was a tour of the rehabilitation areas after the Open House Meeting, where the chiefs, queen mothers, opinion leaders, media as well as staff of AGL and representatives of the Forestry Commission, Newmont Mining and AngloGold Obuasi Mine, got to know procedures involved in the rehabilitation process.
The also visited vegetable farms and a palm plantation among other areas.
