Illegal mining activities continue to threaten the operations of Ghana Rubber Estates Limited (GREL), putting over 600 jobs at risk. The company’s plantation has been heavily affected by encroachment, rendering parts of it inaccessible and disrupting production.

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Speaking to the media, GREL’s Corporate Affairs Manager, Perry Acheampong, expressed deep concern over the destruction caused by illegal mining. He warned that if the situation persists, the company may be forced to shut down one of its factories, worsening Ghana’s unemployment crisis.

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“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. 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,” Acheampong stated.

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Beyond job losses, illegal mining has also led to a severe water crisis at GREL. Acheampong revealed that water sources essential for the company’s operations have been polluted, making them unsuitable for use.

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“We use a lot of water at the factory, but illegal mining has polluted our water sources, making it unusable for operations,” he explained.

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To address these pressing challenges, GREL is working closely with security agencies to safeguard its plantation and prevent further encroachment. Mr Acheampong emphasized the urgent need for stakeholders in the sector to develop effective strategies to combat illegal mining and protect businesses like GREL from collapse.

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Ghana’s unemployment rate currently stands at 3.60%, with a labor force of approximately 14.9 million people. The potential loss of 600 jobs, though statistically small, would contribute to the already strained labor market, leading to increased social and economic challenges.

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GREL is Ghana’s largest rubber processor, operating two factories in the Western Region with a combined processing capacity of 20 tonnes per hour. Other rubber processing companies in the country 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).

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With 13,093 hectares of rubber plantations—9,555 hectares currently being tapped—GREL plays a significant role in Ghana’s agribusiness sector, contributing to job creation and economic growth. In 2022, Ghana earned approximately $131.3 million from exporting processed rubber and natural rubber sheets, according to the Ghana Export Promotion Authority.

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The government holds a 26.75% stake in GREL, benefiting from taxes and dividends paid by the company. However, without immediate action to curb illegal mining, the company’s contributions to the economy and employment could be severely impacted.

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