Court Orders Dihao Investment to Open Defence

By Alfred Adams

Tarkwa — The Tarkwa High Court, presided over by Justice K.A. Ofori Atta, has ordered Dihao Investment Limited, a small-scale mining firm, to open defence in the case in which a Takoradi-based mining firm, Takoradi Gold Ghana, has sued the former, together with the Minerals Commission and the Attorney General. The court has fixed June 6, 2017 for the defendant to open its defence.

Dihao Investment, in its statement of defence, is challenging portions of a concession earlier granted Takoradi Gold Company by the Minerals Commission.

Takoradi Gold Company dragged the Minerals Commission (1st defendant) and the Attorney General (2nd defendant) to court, seeking an order compelling the first defendant to renew its prospecting license in respect of the Kutukrom-Nsuta concession.

Takoradi Gold applied for the renewal of its prospecting license for its Kutukrom Nsuta concession in Prestea in November 2011. A mandatory renewal fee of $20,500 and other financial obligations were met by the plaintiff. The Minerals Commission, subsequently wrote to the plaintiff to confirm receipt of money.

According to the Mineral and Mining Regulations 2012, the Minister shall, within fifteen days, upon the receipt of payment, issue the extension or otherwise to the applicant.

Takoradi Gold did not, however, hear from the Minerals Commission until October 2013, when the latter wrote to the plaintiff that the license could not be renewed.

The reason, according to the Minerals Commission, was that the plaintiff was grappling with some financial problems. Apart from this, plaintiff also failed to embark on detailed mineral exploration.

It was, therefore, the Mineral Commission's recommendation that Takoradi Gold did not have the financial capacity and the technical proficiency to effectively explore the Kutukrom concession.

The plaintiff, however, expressed surprise at the position of the Minerals Commission, which was based on the recommendation of the Minister for Land and Natural Resources, hence the decision to go to court.

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