Government gives Adamus Resources 12-month reprieve to revive mining operations
The government has given Adamus Resources Limited a 12-month reprieve to restructure and revive its mining operations following a meeting aimed at resolving the challenges confronting the company.
The decision was reached at a meeting held at the Presidency on Friday, August 21, as the government seeks to preserve one of Ghana’s few operating indigenous large-scale mining companies.
Under the arrangement, the Ministry of Lands and Natural Resources, the Minerals Commission and Adamus Resources have been tasked with developing a comprehensive 12-month roadmap to restore the mine to full and sustainable operations.
Implementation of the roadmap will be supervised by a six-member management team made up of three representatives from Adamus Resources and three representatives of the government.
The team will oversee measures aimed at improving the mine’s operations and financial position while ensuring that agreed reforms are implemented within the 12-month period.
A key component of the roadmap will be a strategy to settle Adamus Resources’ outstanding financial obligations to the Ghana Revenue Authority (GRA), the Minerals Income Investment Fund (MIIF), financial institutions and suppliers.
The government and the company will also explore options for securing fresh capital to support the mine’s operations, including the possibility of bringing in additional investors to acquire equity in the business.
The parties have been given two weeks to finalise the proposed roadmap and submit it to the Presidency for consideration.
The intervention follows growing concerns over the financial and operational difficulties facing Adamus Resources and forms part of efforts to find a sustainable solution while protecting jobs, government revenue and the future of the indigenous mining operation.