Cassius Mining Ltd, an Australian gold mining company, has filed a $277 million (USD) claim against the government of Ghana, alleging breaches of contract and constitutional disputes surrounding its gold project in the Talensi district of the Upper East Region.
The Sydney-headquartered company lodged its claim with the London Court of International Arbitration on December 23, 2024.
Allegations and damages
Cassius Mining claims that Ghana’s actions, including the non-renewal of its prospecting licence, deprived the company of the full value and potential profits of its gold project.
“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 said in a statement to the Australian Stock Exchange (ASX).
The company’s assessment of lost profits and damages, prepared by experts from AMC Consultants in Australia and Secretariat in the United States, places the total claim at $277 million (USD).
Background of the dispute
Cassius entered into a two-year prospecting licence agreement with Ghana’s outgoing government in 2016.
However, in 2019, the Ghanaian government argued that the licence had not been ratified under the country’s constitution, rendering it invalid.
Legal battles ensued, and in 2023, the Ghanaian High Court placed an injunction preventing Cassius from pursuing international arbitration.
This year, the court further ruled that Cassius could not pursue arbitration outside Ghana under the terms of the prospecting licence.
It remains unclear how the court’s rulings impact the current proceedings in London.
Cassius open to settlement
In a statement to the ASX, Cassius Managing Director David Chidlow expressed the company’s readiness to resolve the dispute through arbitration or an earlier 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,” he said.
Mr. Chidlow commended the efforts of the team involved in preparing the claim.
“The independent experts, company’s lawyers, key witnesses as well as the board have all worked tirelessly and effectively to complete the substantial task of filing the company’s claim against Ghana over many months,” he added.
The Ghanaian government is expected to file a defence, including any supporting evidence and witness statements, in response to Cassius Mining’s claim.
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