Illegal mining is significantly threatening Ghana Rubber Estates Limited’s operations by encroaching on plantation lands and contaminating water sources, posing risks of factory shutdowns and job losses. GREL’s sustainability and contribution to the economy depend on immediate action against these activities, given its key role in rubber production and employment in Ghana.
Ghana Rubber Estates Limited (GREL) is threatened by illegal mining encroaching on its rubber plantation, potentially leading to the shutdown of one of its factories. Perry Acheampong, GREL’s Corporate Affairs Manager, stated that the company cannot access crucial plantation areas that have been overtaken, resulting in the destruction of rubber trees and diminished production capacity. The illegal mining activities not only hinder operations but also pose significant risks to the company’s long-term sustainability.
GREL operates two factories in the Western Region, with a collective processing capacity of 20 tonnes per hour. This is complemented by other processing plants such as NARUBIZ Ltd. (1 tonne/hour), Rubber Plantations Ghana Ltd. (RPGL) (0.8 tonnes/hour), and APEX Rubber Processing (1 tonne/hour). The situation has escalated into a water crisis, as illegal mining has contaminated nearby water sources essential for factory operations.
Acheampong emphasized the dependency on clean water for factory operations, expressing that illegal mining activities have polluted these vital sources, rendering them unusable. Consequently, GREL faced a temporary factory shutdown due to insufficient water supply. If the pollution continues, there is a real threat of permanently closing one factory, impacting approximately 600 direct employees.
The urgency of addressing illegal mining is underscored as GREL is among Ghana’s largest agribusiness entities, critical for job creation and the country’s economic health. The company manages 13,093 hectares of rubber cultivation, of which 9,555 hectares are currently being tapped for production.
In 2022, GREL generated around US$ 131.3 million from exports of Technically Specified Rubber and natural rubber sheets. The government owns a 26.75% stake in GREL, benefiting from statutory payments and dividends. This reinforces the necessity for the state to safeguard such crucial agribusinesses that are integral to economic progress, thereby highlighting the imperative to combat illegal mining activities in the region.
Ghana Rubber Estates Limited (GREL) is a significant player in Ghana’s agribusiness landscape, primarily involved in rubber production. The ongoing issue of illegal mining encroaching on agricultural lands poses severe risks to GREL’s operations and the broader agricultural economy. The company faces threats not only from land encroachment but also from pollution and water shortages, highlighting the need for immediate interventions. The economic stakes are high, given that GREL contributes significantly to Ghana’s rubber industry and employment.
The threats posed by illegal mining to Ghana Rubber Estates Limited call for urgent action from stakeholders. Without intervention, the company risks significant operational disruptions, job losses, and detrimental economic impacts. Protecting GREL and similar enterprises is essential for maintaining the health of Ghana’s economy and agricultural sector. A coordinated approach to combat illegal mining is crucial to ensure the sustainability of pivotal agribusinesses in the region.
Original Source: www.ghanaweb.com
