Australian gold miner files $443 million claim against Ghanaian government

An Australian gold mining company has taken an African government to court over a dispute worth nearly half a billion dollars.

An Australian gold miner has lodged a claim for just under half a billion dollars against the Ghanaian government over contract and law disputes.

Cassius Mining filed proceedings in London’s Court of International Arbitration on Tuesday.

The Sydney-headquartered miner alleges it has independent evidence showing the West African government’s actions resulted in $443m in lost profits and damages.

“Ghana’s actions, including its failure to renew Cassius’ prospecting licence, has resulted in Cassius being deprived of the entire value and profits of its gold project in Ghana,” the company said in a statement to the ASX.

Land held by Cassius Mining in north Ghana is now the subject of a contractual dispute with the Ghanaian government. Picture: Google

Cassius signed a two-year prospecting licence with the outgoing Ghanaian government in 2016 shortly before a regime change.

However, the country’s new Attorney-General argued in 2019 that the licence had not been ratified as per the country’s constitution.

In 2023, the Ghanaian High Court placed an injunction on the mining company’s ability to pursue international arbitration.

This year, the court ruled Cassius could not pursue arbitration outside Ghana under the prospecting licence agreement. It is not immediately clear how that ruling affects this week’s filings.

Cassius managing director David Chidlow said the company would be willing to settle before an international court hearing.

“We look forward to progressing the case and achieving a successful outcome for the benefit of shareholders and the company, whether that be at hearing or any earlier potential settlement,” he said in a statement to the ASX.

“The independent experts, company’s lawyers, key witnesses as well as the board have all worked tirelessly and effectively to complete the substantial task of filing the company’s claim against Ghana over many months.”

Cassius Mining's Gbane project borders the established Chinese-owned Shaanxi mine. Picture: Cassius Mining

The Ghanaian government will now have the opportunity to file a defence.

The court proceedings come after a 2022 investigation by The Age and Sydney Morning Herald found Chinese miner Earl International had been digging on land held by Cassius and allegedly taking tens of millions of dollars of gold.

The Ghanaian government has continued to support Earl International, despite 60 miners having been killed in its operations over the past decade.

The Chinese company denies the human rights abuse allegations.