Shaanxi Mining (Ghana) Limited, Chinese Mining firm has been accused of engaging in illegal mining. The management of the Yenyeya and Pubortaaba Mining Groups, registered Small Scale Mining groups in the Gbane Mining community in the Talensi District of the Upper East raised the accusation and said the firm is illegally mining in their concession.
The accusations were raised in a statement issued and signed by the Managing Director of Yenyeya Mining Group, Mr Charles Taleog Ndanbon, and copied to the Media here in Bolgatanga. The two registered Small Scale Mining has called on the state apparatus responsible for the mining sector to ensure that they dig into the matter to avoid bloodshed in the area.
The firm which recently changed its name from Shaanxi Mining (Ghana) Limited to Earl International Group (GH)Gold Limited and seeking for permit to go into large scale mining has since 2008 been providing mining support services to the Yenyeya Mining and Pubortaaba mining Groups.
Breach of contract
According to the Yenyeya Mining and Pubortaaba mining Groups, the contract that was signed between them and the company was to provide technical and mining support services to them and not to prospect, process, refine and to sell.
However, the management of the two mining groups alleged that the Chinese firm is now engaging in illegal mining in their legally acquired concession and exporting the gold without the gold without their consent.
“Under the miming law it was not right for service providers such as the Earl International Group (GH) Gold Limited to use the legally acquired concession of the Yenyeya Mining and Pubortaaba mining Groups as gateway to go into large scale mining,” said the groups in the statement.
They alleged that the Chinese Mining Company had over the years breached the signed contract and performance of obligations by wrongfully mining, processing, refining, and selling gold outside to country such as Dubai. Moreover, they have also alleged that the Chief Executive Officer of the Chinese Mining Company, Wei Xing with his Ghanaian business partner including Mohammed Aminu Min-Right Consult have refused severally to pay the 7% portion of the gross production of mineral mined at the site due Yenyeya Mining group.
