Revoke Heath Goldfields mining contract…CACA urges Lands, Natural Resources Minister
The members of the Concerned Area Community Alliance (CACA) have appealed to the Minister of Lands and Natural Resources, Emmanuel Armah Kofi-Buah, to revoke the country’s mining contract with Heath Goldfields in the Prestea Bogoso Mine.
According to the group, who are concerned residents of Bogoso and Prestea affected by the operations of Heath Goldfields, Heath Goldfields has demonstrated that it did not possess the financial and technical capacity required to manage the mine effectively.
Addressing a press conference in Accra yesterday, Counsel for CACA, Mr Martin Kpebu, alleged that the company had breached key provisions of the contract and failed to honour its financial obligations, and therefore, urged the Minister to act with urgency in terminating the agreement in the interest of the state and affected communities.
The Bogoso-Prestea gold mine, located in the Western Region, remains one of Ghana’s most strategic mining assets, historically contributing significantly to local economic development, employment and revenue generation. For decades, the mine has served as a major source of livelihood for residents within the Prestea-Huni Valley Municipality, supporting businesses and sustaining households.
Mr Kpebu said since the grant of the lease to Heath Goldfields in December 2024, the mine had seen little to no meaningful operational progress, adding that despite ambitious commitments outlined in the company’s Strategic Mine Development Plan, including a projected $500 million investment, there has been a consistent failure to meet critical milestones.
He said as of now, Heath Goldfields had invested only $27.3 million, far below the $150 million it projected to spend by the end of 2025.
Mr Kpebu noted that other development plans such as the rehabilitation of essential infrastructure, commencement of mining operations within the stipulated timelines, settlement of outstanding employee entitlements, and backing from Yilmaden Holdings, which reportedly influenced the award of the lease, had not materialised, raising questions about the company’s financial capacity.
• Lawyer Martin Kpebu (second from left) addressing the press conference. With him are members of the CACA. Photo: Ebo Gorman
Mr Kpebu said Heath Goldfields had failed to procure and install critical equipment, including a gyratory crusher, and that payment of legacy debts owed to state institutions such as the Ghana Revenue Authority and SSNIT, as well as local contractors, had not been honoured by the company.
He noted that inspections conducted by the Minerals Commission uncovered serious operational and safety concerns such as a non-functional process water treatment plant, a dilapidated tailings storage facility, and extensive flooding in underground sections of the mine.
The Counsel for CACA further raised concerns over the company’s inability to demonstrate credible financing arrangements, pointing out that the much-publicised financial backing had not materialised.
The Counsel for CACA said a $65-million financing agreement reportedly secured from Trafigura, which allegedly placed encumbrances on the mining lease and associated assets without the necessary parliamentary ratification and ministerial consent, posed a significant risk to Ghana’s sovereign mineral rights and a potential threat to state control over the asset.
CACA maintains that these developments constitute clear violations of the Minerals and Mining Act and the 1992 Constitution. He, therefore, called on the Minister to invoke the relevant legal provisions to terminate the lease and initiate a transparent process to secure a capable operator.
“The evidence is overwhelming,” he stated. “The nation cannot afford further delay. Ghana’s mineral resources must be managed in a manner that delivers real benefits to its people.”
BY KINGSLEY ASARE
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