The government's effort to re form mining operations in the country has received a major boost, following the reactivation of the defunct Ghana Consolidated Diamonds (GCD) Limited, located at Akwatia in the Eastern Region, for business.

The company, which is now wholly-owned by Ghanaian businessmen, who have promised to invest over $100 million into its operations, would operate under the name Great Consolidated Diamond Ghana Limited (GCDGL).

The management of GCDGL described the bidding for the defunct company as a challenging venture, but noted that the outcome, clearly demonstrates the government's confidence in Ghanaian firms to deliver, when given the opportunity.

Like many West African countries, Ghana has diamond resources, but is yet to become a major producer. In 2009, the country produced 376,371 carats of rough diamonds, with a total value of just under $7 million, representing a major decline in diamond production volumes.

Lack of adequate financial resources, coupled with inadequate logistics among many other issues, also rendered the government incapacitated, resulting in the total collapse of the company, and leaving 806 workers jobless in 2007.

In 2000, GCD, together with fifteen other state-owned companies, was shortlisted for divesture by the Divestiture Implementation Committee (DIC). In 2003, the Divestiture Implementation Committee opened a tender for foreign investors to participate in the GCD's operations, but it failed to materialise.

The winner of the bid, Sapper and Associates, failed to pay an amount of US$3.2 million, being 10% of the total winning bid of approximately US$34 million by the stipulated deadline, according to the Business Times.

INCO of Canada and De Boers of South Africa also joined the race, but withdrew at the last minute, citing technical and unmatched corporate standards respectively, as their reasons. Total liabilities of the company currently stand at US$15 million, but information available to The Chronicle indicates that the amount is not a source of worry to the new owners of the company, as it has earmarked US$100 million to invest in a five-year multi-phased programme, by way of revamping the diamond mine.

Fifty percent of the said liability, if paid, would be used to pay the company's 806 workers who were asked to go home in 2007, as their severance fee. Part of the said amount, would also be used to pay the company's debt to the Volta River Authority (VRA), which stands at ¢29,802,087,965 (old Ghana cedis) as at 2005.

The Chronicle also learnt that an additional amount of about US$20 million would be needed for plant and other equipment, in order to get the company running.

At the time of filing this story, new equipment and machinery were being assembled at the premises of the company, giving an indication of the preparedness of the new company to do business.

The Vice President, John Mahama, who officially cut the sod for the commencement of business, said the rebirth of the diamond company 'marks another milestone in the progress of this nation towards the enhancement of the living standards of our people, through the creation of jobs, socio economic development, and the establishment of a peaceful and harmonious environment.'

The commencement of operations of the Great Consolidated Diamond Ghana Limited (GCDGL), formerly Ghana Consolidated Diamond (GCD) Limited, he noted, was a clear testimony of the government's commitment to investing in its own people, and creating jobs.

'We have come a long way in the historical and social development of our country, and it is time to show concrete evidence of our resolve to give meaning to what the NDC governments promised, by creating the necessary conditions and enabling environment for the promotion of indigenous businesses.'

'The NDC government's bold step in activating the Akwatia Mines, through an indigenous investor, for the purposes of salvaging the unemployment situation and accelerating economic development in the Eastern Region, is very much in line with the national aspirations of Ghana, as conveyed in the Directive Principles of State Policy enshrined in the Constitution,' he noted.

He said the mining sector was an important segment of the Ghanaian economy, which continues to play a significant role in the country's socio-economic development, since the colonial period. The mining sector, he noted, presents a strong potential to generate substantial revenue and employment to provide more visible economic benefits to the country, and improved livelihood for the population.

According to Mr. John Mahama, the government would ensure that the mining sector is given the due attention it deserves, by enforcing the right policies to ensure that the citizenry benefit from the sector. He entreated the general public to endeavour to create sustainable jobs, revamp the local economy, and conserve the environment.

The Board Chairman of the company, Mr. Kwame Gyan, on his part, told the gathering that his outfit was adequately prepared to operationalise its multi-dimensional strategy to revive the fortunes of the company which was once the economic pillar in the Eastern Region.

'We will endeavour to deliver on the trust imposed in us by the government and the people of Akwatia who have solidly stood behind us as we went through the competitive bidding process,' noted Mr. Gyan.

Apart from the main operations, he said the company had developed a comprehensive plan to ensure that sustainable employment was provided for the host communities.

Gyan further told the gathering that apart from investing over US$100 million in a five-year multi-phase programme, the operations of GCDGL had been uniquely designed to transform the landscape of Akwatia and the entire region into a commercial hub with state of the art infrastructural development and numerous jobs opportunities.

It is estimated that about 50,000 direct job opportunities would be created in the mainstream mining and other ancillary areas such as large scale agricultural activities, which will make use of the reclaimed mine lands cash crop farming – oil palm, citrus and cocoa plantations – livestock rearing – fish farming, afforestation, stable foods farming, and finally, add value to farm produce through Agro processing.

The expected employments to be generated from all these ancillary activities are estimated at 22,000, according to the Board Chairman.

He said his outfit would regularise small scale mining to ensure effective monitoring of their operations. 'This will help reduce, if not eliminate, the menace of galamsey in Akwatia,' he noted.

He told the gathering that the GCDGL, as part of its corporate responsibility, would upgrade and expand the company's hospital and establish modernised clinics with the communities in the concession.

'The net effect of our operational strategy will support the government's policy of poverty alleviation, and improvement in the living standards of the people in the region, especially, those within the communities in and outside the concession.'

The traditional leaders of Akwatia and its surrounding areas have welcomed the new company. In a joint statement, the chiefs hoped the restart of operations of the mine would help in saving the local economy from total collapse.