Cassius Mining Limited, an Australian mining company, has initiated arbitration proceedings against the Republic of Ghana at the London Court of International Arbitration, seeking US$277 million in compensation for what it claims is an unlawful breach of contract. The crux of the dispute revolves around the Ghanaian government’s refusal to extend Cassius Mining’s prospecting license in the Gbane area of the Upper East Region in January 2020. This refusal effectively halted the company’s gold mining project, leading to significant financial losses, according to Cassius.
The Minerals Commission, the Ghanaian governmental body responsible for regulating mining activities, justified its decision to deny the license extension by citing Cassius Mining’s alleged violation of Regulation 107 (1) of the Minerals and Mining (Licensing) Regulation, 2021 (L.I 2176). This regulation mandates disclosure of beneficial ownership, which Cassius Mining allegedly failed to comply with fully. Specifically, the Commission asserted that the company concealed the criminal records of two of its directors, Anthony Upul Samantha and Radwin Elhassan, both of whom had been convicted of offenses in Australia. The Commission argued that these convictions disqualified them from holding directorial positions in a Ghanaian mining company.
The revelation of the directors’ past convictions stemmed from an investigation conducted by the Northern Patriot in Research and Advocacy (NORPRA), a civil society organization operating in northern Ghana. NORPRA, supported by the Extractive Industries Transparency Initiative (EITI) and Transparency International, undertook a comprehensive beneficial ownership and integrity screening research project, which brought to light the criminal backgrounds of the two directors. NORPRA’s interest in Cassius Mining was piqued by the government’s decision to allocate a mining concession, originally earmarked for small-scale mining, to the Australian company for large-scale operations. This unexpected policy shift prompted NORPRA to investigate the company’s ownership structure and background.
NORPRA’s investigation, conducted in collaboration with international CSOs and utilizing documents from the Supreme Court of Australia, revealed that Anthony Upul Samantha had pleaded guilty to 19 charges of market manipulation and received a four-and-a-half-year prison sentence. Radwin Elhassan, the other director, had been convicted of possessing 28 kilograms of narcotic drugs. Following these findings, NORPRA formally petitioned several high-ranking Ghanaian officials, including the Inspector-General of Police, the Interior Minister, and the Attorney General and Minister of Justice, urging them to take appropriate action. These findings formed the basis for the Minerals Commission and the Minister for Lands and Natural Resources’ decision to reject Cassius Mining’s license extension request.
The ensuing legal battle between Cassius Mining and the Ghanaian government began with the company’s challenge of the Minister’s decision. In 2023, the High Court in Ghana ruled against Cassius Mining’s attempt to refer the dispute to an international tribunal, citing the terms of the company’s mining license, which stipulated dispute resolution within Ghana’s jurisdiction. The court explicitly prohibited the company from pursuing the case outside Ghana.
Undeterred by these legal setbacks, Cassius Mining has escalated the dispute by filing a case with the London Court of International Arbitration. The company argues that the Ghanaian government’s refusal to renew its prospecting license constitutes an unlawful expropriation of its investment, effectively depriving it of the potential profits from its gold mining project. Based on expert assessments conducted in Australia and the United States, Cassius Mining estimates its losses at US$277 million and is demanding this amount as compensation from the Ghanaian government.
The Ghanaian government has yet to issue a public statement regarding this latest development in the international arbitration. The government’s next course of action remains unclear, particularly in light of the country’s current economic challenges, which could make a substantial payout like the one demanded by Cassius Mining a significant burden. The case presents a complex legal and financial challenge for Ghana, balancing the need to uphold its mining regulations and protect its national interests against the potential ramifications of an adverse ruling in international arbitration.
