A high-stakes legal dispute has emerged over the management and control of the Bogoso Prestea Mines, as Blue Gold Bogoso Prestea Limited (1st Applicant) and FGR Bogoso Prestea Limited (2nd Applicant) have filed for judicial review against the Government of Ghana and other respondents.

This follows the controversial termination of mining leases and the subsequent transfer of the mines to Heath Goldfields Limited.

The applicants have petitioned the High Court (Commercial Division) in Accra to quash a decision by the Minister of Lands and Natural Resources, Samuel Abu Jinapor (3rd Respondent), dated November 12, 2024, granting approval for the transfer of the Bogoso Prestea Mines to Heath Goldfields Limited.

The applicants argue that the decision breaches Section 27(5) of the Minerals and Mining Act, 2006 (Act 703).

Background to the Case

The dispute began early in 2024 when the 2nd Applicant sought approval to assign its mining leases for the Bogoso Prestea Mines to the 1st Applicant. This request was initially approved conditionally by the 3rd Respondent in April 2024.

However, the situation took a sharp turn when, in September 2024, the Minerals Commission (2nd Respondent) communicated the termination of the applicants’ mining leases.

Subsequently, the Interim Management Committee of the Bogoso Prestea Mines, composed of individuals appointed by the Minerals Commission, was tasked with managing the mines. This arrangement was challenged by the applicants, who formally notified the government of their intention to resolve the matter under Section 27 of Act 703, which provides a dispute resolution mechanism for mining rights holders.

Despite this notification, the Minister of Lands and Natural Resources approved the transfer of the mines to Heath Goldfields Limited in November 2024, prompting the current legal challenge.

Reliefs sought by the Applicants

The applicants are requesting several key orders from the High Court, including:

1. Certiorari: To quash the 3rd Respondent’s decision approving the transfer of the Bogoso Prestea Mines.
2. Injunctions: Preventing the respondents and Heath Goldfields Limited from taking control or possession of the mines until the dispute is resolved and barring the Minister from presenting any mining lease agreements to Parliament for ratification.
3. Restitution: Directing the respondents to return the mines to the applicants pending resolution of the dispute.
4. Accountability: Compelling the Interim Management Committee to provide a detailed account of its management of the mines.

Grounds for Judicial Review

The applicants allege that the 3rd Respondent’s decision to approve the transfer is unlawful, as it disregards Section 27(5) of Act 703.

According to this provision, the rights of a mineral leaseholder must remain intact without diminution until 30 days after the final determination of any dispute.

The applicants contend that the government’s actions have not only violated statutory protections but have also adversely impacted their mining rights and business operations.

They further argue that Heath Goldfields Limited, the company awarded the lease, is a newly incorporated entity with a stated capital of GHS 10,000, raising concerns about its capacity to manage the mines.

The court is expected to hear the application soon, with the outcome likely to have far-reaching implications for the parties involved and the future of the Bogoso Prestea Mines.