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An Australian gold mining company has filed a claim for nearly half a billion dollars against the Ghanaian government, citing contract and legal disputes.
The company claims that the government’s actions caused it to lose $443 million in profits and damages.
Cassius Mining filed a case in London’s Court of International Arbitration on Tuesday (24 December). The company, based in Sydney, said the Ghanaian government’s refusal to renew its prospecting licence cost it the value of its gold project in Ghana.
“Ghana’s actions, including its failure to renew Cassius’ prospecting licence, has resulted in Cassius being deprived of the entire value and profits of its gold project in Ghana,” the company stated.
The problem began in 2016 when Cassius signed a two-year licence to search for gold in northern Ghana. This agreement was made just before a change in government. In 2019, the new Attorney-General said the licence was not approved according to the country’s laws.
Since then, the issue has been in court. In 2023, Ghana’s High Court ruled that Cassius could not take the matter to arbitration outside Ghana. Despite this, the company has now filed its case in London. It is unclear how the earlier court ruling in Ghana will affect this new development.
Cassius’ Managing Director, David Chidlow, said the company is open to settling the case before it goes to a full hearing.
“We look forward to progressing the case and achieving a successful outcome for the benefit of shareholders and the company, whether that be at hearing or any earlier potential settlement,” he said.
Mr. Chidlow added that many experts and witnesses had worked hard over months to prepare the claim.
The land where Cassius was working has also been at the center of other issues. A 2022 investigation by Australian newspapers reported that a Chinese mining company, Earl International, had been mining gold on Cassius’ land.
This company is accused of earning tens of millions of dollars from the land, but it denies wrongdoing. The Ghanaian government supports Earl International, even though reports say its operations have led to 60 deaths in the last 10 years.
Now, the Ghanaian government must respond to the claims made by Cassius Mining as the case moves forward.
SOURCE: DAILY MAIL GH
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