The High Court (Commercial Division), Accra Thursday, 20th March 2025, threw out an Application filed by Blue Gold Bogoso Prestea Limited (1st Applicant) and FGR Bogoso Prestea Limited (2nd Applicant) for judicial review of the Minister for Lands and Natural Resources’ termination of their mining rights and its subsequent transfer to Heath Goldfields Ltd.
Blue Gold Bogoso Prestea Ltd, and FGR Bogoso Prestea Ltd filed an application inviting the High Court to quash the Minister’s (3rd Respondent) decision approving the transfer of the Bogoso Prestea Mines and also for an injunction restraining the Respondents and Heath Goldfields Ltd from taking control or possession of the mines until the dispute is resolved.
The application also sought an order barring the Minister from presenting any mining lease agreements to Parliament for ratification, among other reliefs.
Counsel for the Respondents forcefully opposed the application as being incompetent and not properly invoking the jurisdiction of the court since the Minister did not commit any illegality in terminating the Applicants’ right and in transferring same to Heath Goldfields Ltd.
Her Ladyship Justice Yaa Onyameye Gyakobo upon hearing all legal arguments, dismissed the application as incompetent for failing to properly invoke the judicial review jurisdiction of the Court.
BACKGROUND
FGR acquired the Bogoso Prestea Mines from Golden Star Resources in October 2020. However, due to financial constraints, the Mine ceased operations in December 2023. As of December 2023, FGR was indebted to workers in unpaid salaries and to other persons with whom it had contractual agreements.
In January 2024, FGR submitted a proposal to the Minister for Lands and Natural Resources to restructure the Company and raise One Hundred and Fifty Million United States Dollars (US$150,000,000.00) to pay its creditors and revive the Mine.
However, FGR failed to fulfill the conditions given by the Minerals Commission. On the 3rd and 5th February 2024, the Minerals Commission, through its legal processes and considerations, concluded that FGR had breached the mining lease and that it ought to be revoked.
On the 6th of February 2024, the Minerals Commission recommended that the Minister terminate the mining lease.
On 13th February 2024, FGR wrote to the Minerals Commission indicating that FGR has been unable to inject any capital into the mine and further stated that “this, therefore, contradicts LI 2182 (Reg 32: which indicates that the holder of a mining lease or restricted mining lease shall make financial and other provisions and take other steps that are necessary to ensure that the mine is managed and worked in accordance with the requirements of these regulations”.
On 14th February 2024, the Minister wrote to the Minerals Commission in response to its 6th February 2024 recommendation, requesting the Minerals Commission to provide certain responses to aid him to act accordingly.
FGR further released a statement on its intended recapitalisation as part of its proposed restructuring.
On 27th February 2024, the Minister wrote to the Attorney General and Minister of Justice for advice on whether all substantive and procedural legal steps required under the law for the termination of the mining lease had been followed in light of the Minerals Commission’s recommendation for the FGR mining lease to be terminated.
On 18th March 2024, the Attorney General responded to the Minister’s letter stated above and indicated that FGR and Blue Gold have breached the mining laws.
In a letter dated 17th April 2024, the Minister granted FGR a “Conditional Approval” to execute the proposal within 120 days.
FGR was also given two weeks to commence payment of outstanding salaries and complete the same no later than 30th May 2024. The letter also stated expressly that if FGR failed to meet the conditions, the Conditional Approval would be deemed revoked and the Mining Leases terminated without further recourse to the company.
On 25th April 2024, the Minister met Mine Workers and assured them that “should the Company fail to meet any of the above conditions, the Conditional Approval given shall be deemed revoked, and the Mining Leases terminated, without further recourse to the Company”.
On 5th June 2024, the Ghana Mine Workers Union and the Bogoso Gold Enterprise Based Union wrote to FGR on the status of the Conditional Approval given by the Minister and stated that as of 3rd June 2024 “the company has not just failed to fulfil this condition but has gravely worsened the living conditions of workers”.
On 8th July 2024, the Minerals Commission wrote to recommend the termination of the lease and further stated that the Governing Board had recommended the proposal by Heath Goldfields for consideration and approval to facilitate the resumption of the operations of the Mine.
On 3rd September 2024, the Minister wrote to FGR and Blue Gold and indicated that their failure to comply with the conditions contained in the Conditional Approval, and on the advice and recommendation of the Minerals Commission, the Conditional Approval granted on 17th April 2024 had been revoked, and their Mining Leases terminated, in accordance with the terms of the Conditional Approval.
Further, the Government announced in a press release dated 18 September 2024 that the Company’s Mining leases had been terminated. Then on 20th September 2024, FGR and Blue Gold duly acknowledged receipt of the Notice of Termination.
On 20th September 2024, the Minerals Commission appointed an Interim Management Committee (IMC) made up of Labour and Staff of the Commission to manage the affairs of the mine pending the selection of a new investor according to law.
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