Australian gold mining firm Cassius Mining Ltd has filed a $277 million claim against the Ghanaian government over allegations of contractual breaches and constitutional disputes tied to its Talensi gold project in the Upper East Region. The company submitted its case to the London Court of International Arbitration on December 23, 2024.
Allegations and Damages
Cassius Mining claims Ghana’s failure to renew its prospecting licence has deprived the company of the full value and potential profits of its gold operations.
“Ghana’s actions, including its failure to renew Cassius’ prospecting licence, have resulted in Cassius being deprived of the entire value and profits of its gold project in Ghana,” the company stated in a press release to the Australian Stock Exchange (ASX).
The company’s estimated damages, calculated by experts from AMC Consultants in Australia and Secretariat in the United States, amount to $277 million.
Dispute Background
Cassius initially secured a two-year prospecting licence agreement in 2016 under Ghana’s outgoing administration. However, in 2019, the Ghanaian government declared the licence invalid, arguing it had not been ratified in compliance with constitutional requirements.
Subsequent legal battles saw Ghana’s High Court issue an injunction in 2023, barring Cassius from pursuing international arbitration. The court also ruled this year that arbitration outside Ghana was impermissible under the licence terms.
Despite these rulings, Cassius has moved forward with its claim in London. It remains uncertain how Ghana’s High Court decisions will affect the arbitration process.
Cassius Open to Settlement
Cassius Managing Director David Chidlow has indicated the company’s willingness to resolve the dispute through either arbitration or an early settlement.
“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,” Chidlow said.
He also commended the team involved in preparing the substantial claim, acknowledging the contributions of legal advisors, expert witnesses, and company executives.
The Ghanaian government is expected to respond with a defence, which will include supporting evidence and witness statements.
This high-stakes arbitration could have significant implications for Ghana’s reputation as an investment destination and Cassius’ future in the gold mining sector. The international business community is closely watching the outcome of this case.
