Cassius Mining Initiates $277 Million Claim Against Ghana Over Mining Dispute

Cassius Mining Ltd, an Australian gold mining company, has filed a significant claim against the government of Ghana, seeking $277 million in damages. The dispute stems from issues regarding the company’s gold project in the Talensi district of the Upper East Region, where the company alleges breaches of contract and constitutional disputes. The claim was officially submitted to the London Court of International Arbitration on December 23, 2024, following ongoing legal tensions between Cassius Mining and the Ghanaian government.
The Allegations and Damages
Cassius Mining has accused the Ghanaian government of actions that have deprived the company of its rightful profits and the full value of its gold project. Specifically, the company points to the failure to renew its prospecting licence as a key factor leading to these losses. In a statement to the Australian Stock Exchange (ASX), Cassius explained that this non-renewal had a detrimental impact on their ability to explore and develop the site for gold extraction. As a result, Cassius has estimated its total claim for lost profits and damages at $277 million (USD), a figure supported by reports from independent experts AMC Consultants in Australia and Secretariat in the United States.
Cassius Mining argues that the Ghanaian government’s actions have effectively denied the company the opportunity to exploit the gold resources and profit from its project. The company believes this was an unfair and detrimental decision that violates its contractual rights and infringes upon the constitutional protections it had reasonably expected.
Background to the Dispute
The dispute between Cassius Mining and the Ghanaian government began in 2016 when the company entered into a two-year prospecting licence agreement with the government. The licence was intended to allow Cassius to explore and develop a gold mining project. However, in 2019, the government of Ghana took the position that the licence had not been constitutionally ratified, rendering it invalid. This sparked a series of legal battles as both sides fought over the interpretation of the contract and the constitutional validity of the agreement.
In 2023, the Ghanaian High Court issued an injunction that prevented Cassius from pursuing international arbitration, which the company had hoped would resolve the conflict. Furthermore, in 2024, the court ruled that Cassius could not seek arbitration outside Ghana in relation to the terms of the prospecting licence. This decision has added complexity to the legal dispute and raised questions about how the ongoing proceedings in London will proceed. While these court rulings are relevant, it remains uncertain how they will impact the arbitration case now being heard in London.
Cassius’s Willingness to Settle
Despite the ongoing legal battle, Cassius Mining has expressed an openness to resolving the dispute through arbitration or an early settlement. David Chidlow, Managing Director of Cassius Mining, stated in a comment to the ASX that the company is focused on achieving a favorable outcome for its shareholders, whether that is through a full hearing or an earlier settlement. Chidlow emphasized the hard work of the legal and expert teams that prepared the case and the filing of the claim, noting that it was a substantial effort that had taken many months.
“We look forward to moving this case forward and securing a successful result, which will benefit our shareholders and the company,” Chidlow said. The company’s commitment to finding a resolution reflects its desire to close this chapter of the dispute and move forward, regardless of whether that outcome comes through arbitration or another form of resolution.
What Lies Ahead
As the case progresses, the Ghanaian government is expected to file a response to Cassius Mining’s claim, including any supporting evidence and witness statements. This will form part of the defense as the two parties continue their legal battle. The proceedings will unfold within the London Court of International Arbitration, and the outcome of this case will have significant implications for both Cassius Mining and the government of Ghana. The case also has broader implications for the future of foreign investment in Ghana’s mining sector and how disputes between international companies and the government are handled.
In the coming months, the international arbitration will likely set important precedents for how mining disputes are resolved in the region. The final ruling could impact future mining agreements and the relationship between Ghana and foreign mining companies, particularly in terms of contract enforcement and constitutional matters. The outcome could shape Ghana’s mining industry and influence its policies in relation to foreign investments.