Ghana Rubber Estates Limited (GREL) faces one of its factories’ potential shutdown due to severe encroachment on its plantation by illegal mining activities.
“We are unable to access parts of the plantation. Once the land is taken over the trees are destroyed, leading to a loss in production,” said Perry Acheampong, Corporate Affairs Manager-GREL.
Mr. Acheampong disclosed this to the B&FT and lamented that illegal mining activities are threatening the company’s operations and sustainability.
GREL, the largest processor, operates two factories in the Western Region with a combined capacity of 20 tonnes per hour.
Other processing factories include NARUBIZ Ltd. (1 tonne per hour), Rubber Plantations Ghana Ltd. (RPGL) (0.8 tonnes per hour) and APEX Rubber Processing (1 tonne per hour).
He added that the company is facing a water crisis as all nearby water sources have been polluted by illegal mining activities.
“We use a lot of water at the factory but illegal mining has polluted our water sources, making it unusable for operations. At one point, we had to temporarily shut down the factory due to this issue. If it persists, we may be forced to close one of our factories, which employs 600 direct staff,” said Mr. Acheampong.
However, he said: “We are collaborating with security agencies to find the best ways to protect our concession,” – emphasising the urgent need for stakeholders in the sector to develop new strategies for addressing the issue and prevent the factory from collapsing.
GREL is one of the country’s largest agribusinesses, playing a crucial role in job creation and economic growth.
Currently the company has 13,093 hectares of land planted with rubber. A total of 9,555 hectares are under tapping.
In 2022, exports of Technically Specified Rubber – processed natural rubber graded for industrial use – and natural rubber sheets generated approximately US$131.3million, according to data from the Ghana Export Promotion Authority.
The state holds a 26.75 percent stake in GREL’s operations and, in addition to statutory payments, the company also pays dividends.
Source: thebftonline
