Private legal practitioner Martin Kpebu has backed calls for government to terminate the mining lease granted to Heath Goldfields Limited (HGL) to manage the Bogoso-Prestea mine.

He cites what he describes as clear evidence of contractual breaches, financial weakness and risks to national assets.

Speaking in support of the Catchment Area Community Alliance (CACA), which represents communities in the Bogoso-Prestea area, Mr Kpebu said Heath Goldfields had failed to meet key obligations tied to the redevelopment of the mine and should no longer be allowed to operate.

He argued that the situation has left one of Ghana’s most important gold mining assets effectively stalled, with implications for workers, local communities and state revenue.

Addressing a news conference in Accra on Tuesday, Mr Kpebu noted that the Bogoso-Prestea mine, located along the Ashanti Greenstone Belt, has historically been a major economic driver in the Western Region, providing jobs and supporting local businesses for decades.

The lease was granted to Heath Goldfields in December 2024 after the previous operator lost its licence.

The company had presented what Mr Kpebu described as an “ambitious redevelopment plan”, including a proposed $500m investment backed by Yilmaden Holdings.

However, he said there is little evidence that these commitments have been fulfilled.

Mr Kpebu questioned the credibility of the financing arrangements that formed the basis of the lease award.

He said there is “no publicly available evidence” to support claims of a structured $500m investment, adding that even the initial $150m expected within the first 18 months had not materialised.

According to him, only about $23.7m has been spent so far, covering partial payments to workers, supplier debts and preparatory works.

“These are nowhere near the scale of investment required to revive a mine of this size,” he suggested.

He pointed to regulatory findings indicating that the mine is not operational despite timelines set out in the development plan.

Inspections, he said, revealed a non-functional water treatment plant, deteriorating infrastructure and no visible mining activity.

Underground conditions are also said to be worrying, with parts of the mine flooded and safety tests on critical equipment overdue.

He further cited reports of illegal mining within sections of the shaft, describing the situation as “deeply troubling” for both safety and regulatory oversight.

Despite a stop-work order and a 120-day notice issued by authorities to remedy the breaches, Mr Kpebu said Heath Goldfields had failed to take adequate corrective action.

Mr Kpebu also highlighted what he described as significant delays in payments owed to employees and statutory bodies.

He said Heath Goldfields was required to settle salaries, severance and other entitlements shortly after receiving the lease, but only made partial payments much later, leaving about $4.9m still outstanding.

“This raises serious questions about the company’s financial capacity from the very beginning,” he argued.

Mr Kpebu also raised concern over a $65m financing agreement between Heath Goldfields and Trafigura, which he said could expose Ghana to significant risk. He explained that the deal involves a prepayment arrangement for gold, backed by a sweeping charge over the company’s assets, including the mining lease itself.

According to him, such an arrangement may breach constitutional and statutory requirements, including the need for parliamentary ratification and ministerial approval before mineral rights can be encumbered.

He warned that the structure of the agreement could allow a foreign lender to take control of key mining assets without prior judicial process.

“This creates a material risk to the State,” he said, adding that it could undermine Ghana’s control over a strategic resource.

Mr Kpebu also questioned the circumstances under which the lease was awarded, noting that it was granted during a transitional period when government had directed that major transactions be suspended, and at a time when key preconditions had not been met.

Backing the community group's position, Mr Kpebu urged the government to act decisively.

He argued that the evidence shows HGL lacks “the technical competence, financial capacity, and good faith” required to manage the mine.

He is urging the Minister for Lands and Natural Resources to invoke his powers under the Minerals and Mining Act to terminate the lease and begin a transparent process to identify a new operator.

“The people of Prestea are yearning for a capable and well-resourced investor,” Mr Kpebu said, warning that continued inaction could further undermine livelihoods and confidence in the sector.