Cassius Mining Limited, an Australian gold mining firm, has escalated its legal dispute with the Ghanaian government by filing a $277 million claim at the London Court of International Arbitration (LCIA).
The issue stems from alleged breaches of contract and constitutional conflicts linked to the company’s gold exploration project in Talensi, Upper East Region.
The conflict dates back to 2019, when Ghana’s government declined to renew Cassius Mining’s prospecting license, citing constitutional non-compliance.
Authorities argued that the license was not properly ratified under Ghanaian law, rendering it legally void. However, Cassius Mining contests this stance, asserting that the government’s actions unjustly deprived the company of the full value and potential earnings from the Talensi project.
Valuation and Expert Support
To substantiate its $277 million claim, the company relied on assessments from independent experts AMC Consultants in Australia and Secretariat in the United States.
These evaluations underpin Cassius Mining’s demand for compensation, reflecting the projected value of the project had it proceeded as planned.
Legal Setbacks in Ghana
Cassius Mining’s attempts to resolve the matter internationally have encountered significant obstacles. In 2023, Ghana’s High Court issued an injunction preventing the company from seeking international arbitration. The court later ruled that the prospecting license’s terms prohibited arbitration outside Ghana.
Despite these setbacks, Cassius Mining has persisted in pursuing international arbitration. The company maintains its legal right to seek resolution beyond Ghana’s jurisdiction, arguing that this is essential to ensuring a fair outcome.
Confidence in Legal Strategy
David Chidlow, Managing Director of Cassius Mining, remains optimistic about the company’s prospects. Speaking to Daily Graphic, he stated, “We look forward to progressing the case and achieving a successful outcome for the benefit of shareholders and the company, whether that be at a hearing or through an earlier settlement.”
Government’s Expected Response
The Government is anticipated to respond by filing its defence, paving the way for a potentially high-stakes arbitration process. The case will test Ghana’s legal framework for resource management while highlighting the challenges foreign investors face in the country’s mining sector.
The outcome of this case will have significant implications for Cassius Mining and the broader mining industry, as it underscores the importance of contract enforcement and investor protection in emerging markets.
