Blue Gold, a major British mining company operating the Bogoso Prestea Mines in Ghana, is locked in a contentious dispute with Ghana’s Minerals Commission and the Ministry of Lands and Natural Resources. The conflict centers around allegations that the Ministry, led by outgoing Minister Samuel Abu Jinapor, has unlawfully reassigned mining licenses held by Blue Gold to Heath Goldfields Limited (HGL)—a company with no prior mining experience and a modest share capital of just 10,000 cedis.
Blue Gold has provided substantial evidence of its financial capability, including documentation from investors confirming over $100 million in daily liquidity. Despite this, the Minerals Commission has reportedly refused to acknowledge the company’s existing licenses or review its financial documentation. Instead, the Commission is allegedly working to transfer the licenses to HGL, which is linked to the family of a former Ghanaian Finance Minister and Yıldırım Holding, a Turkish conglomerate involved in coal mining and shipping.
The decision to reassign the licenses has been criticized as politically motivated and potentially illegal. It is alleged that some National Democratic Congress (NDC) figures are involved, aiming to leverage the incoming John Mahama administration to push through the deal, which could embroil Ghana in a costly international legal battle. The Minerals Commission is said to have held a board meeting on December 11, 2024, to finalize the transfer to HGL and its Turkish partners by December 12, before the NDC-led government takes office on January 7, 2025.
Critics argue that under Ghanaian law, new mining licenses require parliamentary ratification to be valid. With the current Parliament nearing its end and a shift in political power expected, it is unlikely that such a decision would gain legislative approval. This has led to accusations that the outgoing New Patriotic Party (NPP) administration is attempting to fast-track dubious deals for political and personal gain.
The dispute has already led to legal action. Blue Gold, represented by Kimathi & Partners, is seeking an injunction to prevent the issuance of new leases, while Mayer Brown has separately obtained an injunction against HGL. Blue Gold has also vowed to pursue international arbitration under the UK-Ghana Bilateral Investment Treaty to protect its interests.
The controversy has paralyzed operations at the Bogoso Prestea Mines for three months, depriving the Minerals Commission of revenue and allowing the site to fall into disrepair. Despite this, Blue Gold has continued to pay its employees and has expressed readiness to resume operations immediately, provided the government recognizes its secured financing and investor support.
The situation has heightened scrutiny of the Minerals Commission and the Ministry of Lands and Natural Resources, with critics accusing them of undermining investor confidence and the rule of law. Blue Gold has emphasized that any new leases issued without parliamentary ratification would be legally invalid, raising questions about the legitimacy of the government’s actions.
The outcome of this dispute is expected to have far-reaching implications for Ghana’s mining sector, legal framework, and ability to attract foreign investment.
Source: TheDotNews