After seven years since Putu cease operations, the Bar wants a determination on whether the agreement is still practically and legally effective; still holds a valid Class “A” license and exploration rights over the designated production area in Grand Gedeh County and whether it is prepared to resume operations. Under the agreement, the Bar stated that Putu obligates to pay US$3 million to the people of Grand Gedeh, River Gee and Sinoe Counties each year as social development contributions. The bar noted that consistent with the provision on environmental assessment, three environmental assessments and audits have not been carried out since 2014, assuming that Putu submitted environmental assessment reports for the five years it operated before closure. The Grand Gedeh lawyers also expressed concern that in the absence of money and roads, the people of Grand Gedeh, mainly those in the immediate vicinity and outside of the production areas are entitled to an environment that supports productive life, free of environmental threats. The Bar, in its review of the 166-page Mineral Development Agreement said it found several other provisions constituting transfer of control, relinquishment and events of company default.

Source: Front Page Africa September 08, 2020 05:26 UTC