A strong call has been made for the immediate abrogation of the Bogoso–Prestea mining lease, as the Catchment Area Community Alliance (CACA) intensifies pressure on government over what it describes as “persistent breaches, weak financial capacity, and dangerous encumbrances” surrounding the mine’s current operator.
Addressing a press conference, legal counsel for the group, Lawyer Martin Kpebu, urged the Minister for Lands and Natural Resources to invoke provisions under the Minerals and Mining Act, 2006 (Act 703) to terminate the lease granted to Heath Goldfields Limited without delay.
From Termination to Reassignment
CACA traced the origins of the current dispute to the termination of mineral rights previously held by Future Global Resources, which were revoked in accordance with Act 703 and related mining regulations.
Following that revocation, the State—through the Minerals Commission—invited new investors from Ghana, China, and Turkey to submit proposals to revive the mine.
Heath Goldfields, backed by Yildirim Group via its mining arm Yilmaden Holding, was selected based on what was described as the most technically sound and financially robust proposal, with assets reportedly exceeding $2 billion.
However, CACA now argues that the very foundation of that decision has collapsed.
Controversial Lease Approval
The group revealed that the mining lease was granted on December 13, 2024—during a transition period when government had directed a halt to major transactions, including mining agreements.
More critically, key preconditions tied to the award—such as the payment of outstanding obligations to workers, the Ghana Revenue Authority, SSNIT, and utility providers—were not met before the lease was approved.
“This raises serious concerns about due process and compliance,” Martin Kpebu stated, insisting that the lease should not have been granted under those conditions.
Broken Promises and Investment Gaps
Heath Goldfields’ winning bid was anchored on a $500 million investment plan from Yilmaden Holding, with an initial $150 million expected within the first 18 months to restart operations and settle debts.
But according to CACA, only about $23.7 million has been spent so far—far below projections—while there is no verifiable evidence of the promised funding arrangement.
Key commitments, including the installation of a gyratory crusher, dewatering of flooded underground shafts, and refurbishment of processing plants, remain unfulfilled.
Operational Collapse and Safety Concerns
A report by the Minerals Commission has confirmed that the mine is largely non-operational, with critical infrastructure either dilapidated or inactive.
The tailings storage facility is in poor condition, the process water treatment plant has not been functioning since 2023, and large sections of the underground mine remain flooded.
Safety concerns have also been raised, including the failure to conduct mandatory equipment tests and the presence of illegal mining activities within the central shaft.
These conditions led to a Stop Work Notice and a 120-day ultimatum for the company to remedy breaches—both of which CACA says were ignored.
Trafigura Deal Raises Sovereignty Concerns
Adding to the controversy is a $65 million prepayment financing agreement between Heath Goldfields and Trafigura.
CACA alleges that the deal places a sweeping charge over the mine’s assets—including the mining leases themselves—without parliamentary ratification or ministerial approval, in violation of Ghana’s laws.
The agreement reportedly allows the lender to enforce its rights and potentially take control of assets without prior judicial process, raising fears about the loss of national control over strategic mineral resources.
Communities Demand Urgent Intervention
For residents of the Prestea-Huni Valley Municipality, the situation has translated into economic hardship, unpaid worker entitlements, and rising illegal mining activities.
CACA argues that the continued operation of Heath Goldfields under these conditions threatens not only local livelihoods but also the integrity of Ghana’s mining sector.
Call for Immediate Abrogation
Citing repeated breaches, unmet financial commitments, and what it describes as “reckless collateralization” of national assets, the group is demanding immediate government action.
“We respectfully urge the Minister to terminate the lease and initiate a transparent process to bring in a capable investor,” Martin Kpebu emphasized.
As the Minerals Commission continues its technical assessment, all eyes are now on the government’s next move—one that could determine the future of one of Ghana’s most strategic gold mining assets.
