LCassius Mining Ltd., an Australian gold mining company, has filed a $277 million claim against the Ghanaian government with the London Court of International Arbitration. The dispute revolves around the company's gold exploration project in the Talensi district of the Upper East Region, which has been plagued by contractual and constitutional issues.
At the heart of the dispute is the non-renewal of Cassius Mining's prospecting license by the Ghanaian government in 2019. The government argued that the license had not been properly ratified under the Ghanaian constitution, rendering it invalid. However, Cassius Mining maintains that this action has deprived them of the full value and potential profits of their gold exploration project.
The company's claim, totaling $277 million, was prepared with the assistance of independent experts from AMC Consultants in Australia and Secretariat in the United States. This significant claim marks a major escalation in the legal battle between Cassius Mining and the Ghanaian government.
The legal battle has been ongoing for several years, with several twists and turns. In 2023, the High Court in Ghana issued an injunction preventing Cassius Mining from pursuing international arbitration ¹. The court further ruled that the company could not pursue arbitration outside of Ghana under the terms of the prospecting license. However, Cassius Mining has proceeded with its international arbitration claim, asserting its right to seek a resolution through the London Court of International Arbitration.
Cassius Mining Managing Director David Chidlow expressed confidence in the company's legal team and their ability to achieve a successful outcome. "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 stated.
The Ghanaian government is now expected to file a defense to the claim, presenting its arguments and evidence to the court. As the case unfolds, it will be closely watched by investors and industry experts, given its significant implications for the mining sector in Ghana.
The dispute highlights the complexities and challenges associated with international mining projects, particularly in countries with evolving regulatory frameworks. As the London Court of International Arbitration deliberates on the case, it will be important to consider the broader implications of the dispute for the mining industry in Ghana and beyond.
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