Blue Gold, a British-owned mining company has demonstrated proof of substantial financial backing to revive operations at the Bogoso Prestea Gold Mine, yet the government of Ghana, under the Ministry of Lands and Natural Resources, has remained unresponsive, leading to mounting tensions over the disputed mining lease.
Documents seen by The Herald show that Blue Gold has amassed definitive financial commitments totalling over $53 million, with additional proof of liquidity from its partners, Gerald Group and Attachy Construction.
These funds include $10 million verified by Olympic Bank, $8 million from Attachy Construction, and $25 million from Gerald Group, one of the largest metals and mining trading firms globally.
Blue Gold itself has confirmed $10 million is readily available in its account.
Gerald Group, in a letter dated November 29, 2024, reaffirmed its financial commitment to Blue Gold, stating that the $25 million is immediately available and contingent only on the unconditional transfer of mining licenses by Ghanaian authorities.
The company also highlighted its strong financial health, with audited reports by Deloitte confirming liquidity exceeding $100 million daily. Gerald’s endorsement further underscores Blue Gold’s capacity to restart operations and ensure the mine’s viability.
In addition to Gerald’s assurances, Attachy Construction has committed $8 million for equipment procurement, while Blue Gold’s own accounts hold substantial funds.
Despite these resources, the Ministry of Lands and Natural Resources, led by Samuel Abu Jinapor as well as the Minerals Commission have refused to engage meaningfully, with Barbara Oteng Gyasi , the Minerals Commission’s Board Chairperson stating publicly during a radio interview in February that “whatever FGR [Future Global Resources, Blue Gold’s parent company] does, we will not listen.”
At the heart of the dispute is the Ghanaian government’s decision to terminate Blue Gold’s mining lease and reassign it to Heath Goldfields Limited, a local company with alleged ties to politicians and backing from Turkish mining giant Yıldırım Holding.
Blue Gold alleges the reassignment was unlawful and a violation of the Ghana-UK Bilateral Investment Treaty (BIT), citing unfair treatment and expropriation.
Blue Gold has initiated steps toward international arbitration, setting a deadline of January 14, 2025, for the Ghanaian government to resolve the issue amicably. Failure to do so will lead to formal arbitration proceedings.
The situation is further complicated by allegations of impropriety involving union officials, some of whom were reportedly appointed to an illegal Interim Management Committee (IMC) and have ties to Heath Goldfields.
Blue Gold has emphasised its ability to deliver value, pointing to its September 2024 resumption of operations at Bogoso Prestea following a strategic investment deal with Gerald Group. However, the ongoing legal dispute has stalled progress, leaving workers, creditors, and local communities in limbo.
The company’s efforts to demonstrate financial readiness have included providing extensive documentation such as a signed agreement with Gerald Group detailing advance funding arrangements.
Proof of funds from Odyssey Transfer & Trust Company confirming $10 million in Blue Gold’s accounts.
Attachy Construction’s agreement, showing a schedule of equipment purchases.
Despite these reassurances, Ghana’s Ministry of Lands and Natural Resources remains silent, prolonging uncertainty for all stakeholders.
With time running out, Blue Gold’s international legal team, led by Mayer Brown, is preparing for arbitration. The company seeks compensation for what it describes as expropriation and breaches of fair and equitable treatment under the BIT.
As Blue Gold continues to push for a resolution, the case raises broader questions about Ghana’s investment climate and the handling of resource disputes under the Akufo-Addo administration.
The Herald