US$1bn arbitration begins over Bogoso-Prestea Mine ownership dispute

The Office of the Attorney-General and Ministry of Justice has engaged Gateley Legal and Atuguba and Associates to support Ghana’s legal team in defending a US$1 billion arbitration claim brought against the state over the Bogoso-Prestea gold mines.

The claim has been filed by Future Global Resources Limited and Blue Gold Holdings Limited before the Permanent Court of Arbitration, alleging breaches of the bilateral investment treaty (BIT) between Ghana and the United Kingdom.

The dispute relates to the ownership and management of the Bogoso-Prestea gold mine, which was previously handed over to Heath Goldfields Ltd. during the administration of former President Nana Addo Dankwa Akufo-Addo under the supervision of the then Lands and Natural Resources Minister, Samuel Abu Jinapor.

The mining asset is linked to former Finance Minister Dr Kwabena Duffuor, who is said to have been associated with the company involved in the transaction. Questions have also emerged about the handling of the matter after Attorney-General Dr Dominic Ayine assumed office in 2025, although no official wrongdoing has been established.

The British-linked companies are seeking US$1 billion in damages, arguing that Ghana’s actions regarding the termination of mining leases constitute unlawful expropriation and breach of treaty obligations.

According to the investors, arbitration proceedings were formally initiated on April 2, 2025, under the 2021 UNCITRAL Arbitration Rules. A three-member tribunal chaired by Klaus Sachs, with Raëd Fathallah and Mohamed Abdel Wahab as members, held its first case management conference in early 2026.

The investors previously attempted to resolve the dispute through correspondence with Ghanaian authorities, including the Minerals Commission, the Attorney-General’s Department, the Ministry of Lands and Natural Resources, and the Office of the President. However, they claim these efforts did not yield a resolution.

They also allege irregularities at the mine site, including unauthorised extraction of gold tailings and disputes over control of operations following the establishment of an Interim Management Committee by the Minerals Commission.

In November 2024, legal representatives for the investors, Mayer Brown International LLP, formally notified Ghana of the dispute, accusing the state of unlawful expropriation, asset interference, and failure to protect foreign investments.

The letter further alleged breaches of fair and equitable treatment obligations under the UK-Ghana investment treaty and warned of potential international financial liability if the matter proceeded to arbitration.

Ghana has since rejected the claims, contesting both jurisdiction and the merits of the case, while agreeing to the arbitration process under the Permanent Court of Arbitration in The Hague.

Meanwhile, Blue Gold Holdings Limited has discontinued parallel proceedings in Ghanaian courts in favour of the international arbitration process.

The outcome of the case is expected to have significant implications for the future of the Bogoso-Prestea mining asset, as well as Ghana’s broader investment dispute framework.

Prince Antwi

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