Bogoso-Prestea Mine Brouhaha: Blue Gold Files $1bn Arbitration Claim Against Ghana

The future of the Bogoso/Prestea Mine in the Western Region hangs in the balance, as the government faces mounting pressure from Blue Gold Resources and its partner, Future Global Resources (FGR), who have filed a US$1 billion arbitration claim in the United Kingdom.

Blue Gold, a NASDAQ-listed company, says it has secured an US$80 million term sheet and has repeatedly demonstrated to the government its financial capacity to revive the mine, settle creditors and resume full-scale operations.

Meanwhile, the mine’s infrastructure is in critical decline, with flooding, equipment failures and regulatory violations threatening its viability.
Blue Gold and FGR are also alleging that the mine has been handed over to a third party, which breaches regulatory violations.

Despite these concerns, the government has yet to take decisive action. Blue Gold and FGR have confirmed they will proceed with international arbitration, with the first hearing expected shortly in London.

“The next step in the arbitration process is imminent and will result in an international injunction against anyone utilising the mine,” a source close to the claim said.
The dispute comes at a time when gold prices are at record high, compounding the economic losses due to inaction.

Local communities face job cuts, rising discontent and reduced income prospects, while the state risks losing substantial revenue.

Investor Confidence on the Line
Analysts warn that the government’s handling of the situation could jeopardise its credibility with international investors, particularly the United States, where Ghana has been seeking investment and financial support.

“Refusing to reinstate the licence of a NASDAQ-listed company, while soliciting U.S. investment sends conflicting signals,” one industry analyst said.
FGR/Blue Gold allege that the Ministry of Lands and Natural Resources and the Minerals Commission unlawfully transferred the Bogoso-Prestea concession to a third party, despite an ongoing legal dispute.

Speaking at a press briefing earlier, Yiadom Boakye Amponsah, Managing Director of FGR/Blue Gold described the current situation as an “illegal occupation” of the company’s concession, buildings, vehicles and equipment, in clear violation of Ghana’s Minerals and Mining Act, 2006 (Act 703).

According to Amponsah, the government revoked the mining lease in September 2024. However, under Section 27 of Act 703, a revoked lease remains valid until at least 30 days after the resolution of any legal dispute, meaning the company’s rights and assets should have remained protected.

Financing in Place, But No Green Light
Mr. Amponsah reiterated that FGR/Blue Gold has both the technical and financial capacity to restart mining operations.

The company, he said, had already secured funding in August 2024, but was blocked from resuming work.

Now, with an additional US$80 million in financing secured, the company is again calling on the government to reinstate its lease, enabling it to pay creditors and restore operations at the site.
Despite pursuing arbitration, Mr Amponsah stressed that the company was open to dialogue and ready to withdraw its legal case if its rights are reinstated.

“We remain committed to legal and peaceful resolution. Our aim is to avoid chaos and maintain peace in the catchment area,” he said.

Mine Flooded, Equipment Failing
The most urgent threat facing the mine is severe underground flooding. Water has already risen above the 18 Level and is advancing toward the 17 Level, which houses the last functioning ventilation fans and critical infrastructure.

The floodwaters are now 13 feet above 18 Level, submerging all installations between 24 Level and 18 Level, including locomotive trains, dump trucks, power stations and orepasses.

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