Future Global Resources Limited (FGRL) and Blue Gold Holdings Limited (BGHL) have appealed to the Government of Ghana over what they describe as the unlawful expropriation of their investments in the Bogoso Prestea Gold Mine.
In a formal letter through their legal representatives, Mayer Brown International LLP, the investors allege significant breaches of the UK-Ghana Bilateral Investment Treaty (BIT). They have called for immediate settlement discussions to prevent escalation, warning that failure to act by 14 January 2025 could result in international arbitration under Article 10 of the treaty.
Key Allegations
- Unlawful Asset Transfer: The investors claim the government illegally transferred ownership of the mine and mining leases to a third party.
- Unauthorized Gold Extraction: They accuse authorities of allowing unauthorized parties to extract and sell valuable gold tailings, resulting in millions of dollars in losses.
- Lack of Response: Ghana’s failure to engage in earlier settlement requests has exacerbated the dispute.
The letter highlights breaches of Ghana’s obligation to ensure fair and equitable treatment under the UK-Ghana BIT and warns of potential World Bank scrutiny. Mayer Brown stressed that unresolved expropriation disputes could damage Ghana’s international creditworthiness and eligibility for loans.
Government’s Position
The Lands and Natural Resources Minister, Samuel Jinapor, has approved the transfer of the Bogoso Prestea Mine to Heath Goldfields Ltd (HGL), following recommendations from the Minerals Commission. The ministry cited HGL’s technical and financial capacity as grounds for approval, emphasizing the importance of:
- Preserving livelihoods of mine workers.
- Reviving local economic activities.
- Preventing environmental degradation caused by the mine’s inactivity.
In a letter dated November 12, 2024, the Ministry directed the Minerals Commission to expedite the transfer process in compliance with legal requirements.
Local Impact and Stakeholder Optimism
The Prestea Bogoso Mine has historically been a vital economic asset, supporting local employment and development. Residents and workers are optimistic about its revival, viewing the acquisition as a step toward stability and growth.
Next Steps
With copies of the investors’ appeal sent to key stakeholders—including President Nana Akufo-Addo, the Minerals Commission, and the British High Commissioner—the Ghanaian government’s response remains awaited. The investors have reiterated their readiness for good-faith negotiations but are prepared to pursue legal remedies should their concerns remain unaddressed.
