Ghana Rubber Estates Limited (GREL), the nation’s leading rubber producer, is teetering on the edge of shuttering one of its key factories in the Western Region, as rampant illegal mining operations choke its plantations and poison vital water sources.
The company, which contributes millions to Ghana’s export revenue and supports thousands of livelihoods, warns that unchecked encroachment by miners could collapse a critical pillar of the local economy.
Perry Acheampong, GREL’s Corporate Affairs Manager, revealed in an interview with the B&FT that swaths of the company’s rubber plantations have been seized and stripped by illegal miners, rendering the land unusable for production. “When these miners invade, they don’t just take the land—they destroy everything. Our trees, our infrastructure, our ability to operate,” Acheampong said, his frustration palpable. The company, which operates two factories processing 20 tonnes of rubber hourly, has already seen production plummet as mining gangs block access to plantation zones.
Compounding the crisis, GREL’s factories face severe water shortages after nearby rivers and streams—critical for processing rubber—were contaminated by chemicals from mining activities. Acheampong recounted a recent temporary shutdown triggered by the pollution, adding, “If this continues, we’ll have no choice but to close a factory permanently.” Such a move would idle 600 direct employees in a region where GREL is a major employer, with ripple effects across ancillary businesses and communities.
The company’s struggle underscores a broader national dilemma: the tension between Ghana’s lucrative natural resource sectors and the illegal mining epidemic, locally known as galamsey, which has ravaged farmlands, forests, and water bodies for years. GREL’s case is particularly stark given its economic footprint. With over 13,000 hectares of rubber plantations and exports earning $131 million in 2022, the company is a linchpin in Ghana’s agribusiness sector. The state, which holds a 26.75% stake in GREL, also risks losing millions in dividends and taxes if operations falter.
While GREL collaborates with security agencies to patrol its concessions, Acheampong stressed that ad hoc interventions are insufficient. “This isn’t just our fight,” he said. “It demands a unified strategy with government, traditional leaders, and communities.” His appeal hints at the deeper systemic failures—weak enforcement, corruption, and lack of alternative livelihoods—that fuel illegal mining.
Analysts warn that GREL’s predicament is a microcosm of Ghana’s environmental and economic crossroads. Rubber production, a sustainable industry with long-term growth potential, is being suffocated by the short-term lure of unregulated mining. The fallout extends beyond economics: contaminated water sources threaten public health, while deforestation from mining exacerbates climate vulnerabilities.
For now, GREL’s fate hangs in the balance. Should one factory close, the consequences would resonate far beyond its gates—a stark reminder of the stakes in Ghana’s battle to protect its industries from the scourge of galamsey. The question remains whether stakeholders can forge solutions before another vital enterprise is irreparably scarred.
