Golden Star Resources officially has handed over its operations to Chinese gold mining firm, ChifengJilong Gold Mining Company Limited, at a ceremony held at the mining site in Akyempim of the Wassa East District, Western Region.

Golden Star in the last quarter of 2021 announced the sale of its mining interest in the Wassa Mine to ChifengJilong for a total transaction value of approximately US$470 million.

Since the announcement of the transaction, the two firms have secured regulatory and other relevant approvals for the deal to take effect.

The concession which was pegged approximately US$470 million by operators of Golden Star, was witnessed by stakeholders including traditional authorities, government officials and regulators in the mining industry for the smooth takeover.

The Minister of Lands and Natural Resources, Mr Samuel A. Jinapor, speaking at the ceremony said both companies had fulfilled all necessary documentations, whiles ChifengJilong Gold Mining Company Limited had agreed to respect and honour all existing contracts of Golden Star Resources, including employment contracts and collective bargaining agreements, entered into with employees of the mine.

“I am informed that ChifengJilong Gold Mining Company Limited, the company taking over the mine, and which is listed on the Shanghai Stock Exchange, has a good track record as a safe and sustainable mine operator, and I am confident, that they will bring in the necessary investment to develop this mine, to optimise production and realise the mine’s full potential,” he said.

MrJinapor assured the workers and the people of Wassa that the government would work closely with the company to ensure that the rights of all employees were protected, and where necessary, appropriate severance packages paid in accordance with the laws of the country.

“Let me use this opportunity to call on all and sundry to support the Appiatse Support Fund, which we have established to support the victims of the unfortunate incident. And if I have not said it enough, let me reiterate, that anyone found culpable in this tragic incident will be sanctioned, while we make strenuous efforts to reconstruct the community,” he said.

The Managing Director of Golden Star Resources Wassa Mine, Mr Shadrach AdjeteySowah, said Golden Star during its operations had respected all mining regulations in the country, and had embarked on developmental projects in the area of education, health sanitation among others.

He said those achievements were among the many reasons why the company had been able to live peacefully with the people of Wassa, and believed Chifeng would do much better for the community.

The Board Member and Executive President of Chifeng Group, Mr Chen Zhiyong, pledged that the company with its many years’ expertise in mining had all the potential to improve the standard of mining in the country.

The Wassa Mine covers an area of 52.89km2. Since acquiring the assets in 2002, Golden Star has mined a total of 2.4 million ounces of gold.

In 2015, the company transitioned from open-pit mining to underground mining, which resulted in an increment of production from 104,000 ounces in 2016 to 165,000 ounces in 2020.

 With an additional 11 years of mine life, Wassa Mine when well-developed is expected to produce one million ounces of gold.