Blue Gold, a leading British mining company operating the Bogoso Prestea Mines in Ghana is currently involved in a contentious dispute with the government regarding the purported reassignment of mining licenses.
Blue Gold has threatened to initiate international arbitration proceedings pursuant to Article 10 of the UK-Ghana BIT if the dispute is not resolved by 14 January 2025.
Despite Blue Gold having presented evidence of considerable financial support, including definitive documentation from investors indicating over US$100 million in daily liquidity, the government has reportedly declined to acknowledge the company’s existing licenses or to review its submitted documentation.
The government is allegedly pursuing reassigning these licenses to another company.
In a letter addressed to Attorney General Godfred Dame, Blue Gold indicated that its requests for prompt discussions have not received a response, noting that Ghana has yet to reply.
Furthermore, it asserted that Ghana has instead taken actions that exacerbate the ongoing dispute.
“While Ghana maintains its silence, significant amounts of gold tailings (worth millions of dollars)—which belong to the Investors—are now being actively extracted from the Mine on a regular basis by unauthorised parties. This is illegal, and Ghana must immediately desist and take the necessary steps to bring about the same result.
“Moreover, the Investors understand that Ghana has now taken steps to finalise (if it has not already finalised) the unlawful transfer of the Mine and its associated mining leases to unrelated third parties. The Investors condemn Ghana’s actions in the strongest possible terms, and remind Ghana that any such transfer would not only be illegal under Ghanaian law, but would further violate Ghana’s obligations under the UK-Ghana BIT.”
“The Investors further understand that on 13 November 2024, Ghana undertook actions to transfer the ownership of the Mine and the Investors’ associated mining leases to an unrelated third party entity entitled “Heath Goldfields Ltd.”. Based on public information, this unlawful transfer has been actioned by the Ministry of Lands and Natural Resources and the Minerals Commission, which has unlawfully seized and occupied the Mine for close to two months now. ”
Blue Gold warned that Ghana will be held liable for every loss caused through the abdication of its responsibilities under the UK-Ghana BIT.
“Ghana will be held liable for every loss caused through its abdication of its responsibilities under the UK-Ghana BIT. The Investors maintain their right to initiate arbitral proceedings to pursue compensation for such losses in the event no amicable settlement is reached. In such case, Ghana should readily expect to risk being held liable for significant damages. The Investors accordingly urge you to address their serious concerns as soon as possible.”
Blue Gold called on the go government to initiate all necessary actions to safeguard or otherwise ensure the preservation of their assets, pending the resolution of this dispute; and engage in urgent amicable settlement discussions as soon as possible.
“The Investors reiterate their proposal that such settlement discussions be held with the relevant Ghanaian authorities (including the Office of the Attorney General, the Ministry of Justice, and
the Ministry of Land and Natural Resources) and at any mutually agreeable date in either Accra,
Ghana or London, United Kingdom.”
Click to read the letter by lawyers for Blue Gold
We’ll strongly dispute termination of FGR Bogoso and Prestea mining leases – Blue Gold
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