Attorney General files injunction against Cassius Mining’s US$300m Int’l arbitration

Attorney General files injunction against Cassius Mining’s US$300m Int’l arbitration

The Attor­ney-General (A-G) and Min­ister of Justice, Godfred Yeboah Dame, has filed an application at the Commercial Division of the High Court, Ac­cra, seeking an order of interim injunction against Cassius Mining Limited, an Australian-owned mining company.

Per the application, which would be moved on July 12, the A-G is seeking to stop the mining company from instituting or pur­suing any arbitration outside the jurisdiction of Ghana, under the Prospecting Licence Agreement of December 28, 2016, entered into between the Government of Ghana and the Cassius Mining Limited.

Mr Dame is again asking the court to stop the company from taking any step whatsoever, in in­ternational arbitration against the Government of Ghana until the arbitration instituted by Cassius Mining Limited against Govern­ment of Ghana at the Ghana Arbi­tration Centre in 2018, has been heard and determined.

Early this year, the company instituted international arbitra­tion against the Government of Ghana at the Permanent Court of Arbitration claiming about US$300 million.

But the case was suspended by the court following objections raised by the Attorney-General.

After the suspension of the arbitration by the Permanent Court of Arbitration, the company had resorted to other internation­al arbitration forum to fight its case against the Government of Ghana.

The facts according to the A-G are that, on October 12, 2016, Cassius Mining Limited applied for a prospecting licence from the Government of Ghana covering 13.791 km of the Gbane/Datoko area in Talensi, Upper East Region of Ghana.

Mr Dame said this was granted by the government on December 28, 2016, for a term of two years expiring in December, 2018.

The A-G contends that clause 21 of the Prospecting Licence Agreement specifically required any question or dispute that arises regarding the rights, powers, duties and liabilities of the parties there­to, to be referred to arbitration in accordance with the Alternative Dispute Resolution Act, 2010 (Act 798) of Ghana.

He said following allegations by Cassius Mining of what it considered to be unlawful and ar­bitrary actions by the Government of Ghana, the company by a letter dated June 14, 2018, notified the A-G of its referral of the dispute between the parties to arbitration under the auspices of the Ghana Arbitration Centre in accordance with the Minerals and Mining Act, 2006 (Act 703) and clause 21 of the Agreement between the parties.

Mr Dame said on June 26, 2018, the Australian-owned company referred the dispute to

arbitration at the Ghana Arbitra­tion Centre pursuant to clause 21 of the Prospecting Licence Agree­ment and the Alternative Dispute Resolution Act, 2010 (Act 798).

He said the company filed a statement of claim at the Ghana Arbitration Centre claiming a number of reliefs.

The A-G stated that on January 9, 2019, Ghana filed a response to Cassius Mining’s Arbitration at the Ghana Arbitration Centre.

Based on that, Mr Dame said a three-member arbitral tribunal comprising Mr Emmanuel Amofa, Mr Kizito Beyuo, and Professor Albert Fiadjoe was duly consti­tuted for the hearing of Cassius Mining’s claim.

Mr Dame stated that in spite of the pendency of the arbitration proceedings at the Ghana Arbi­tration Centre and notwithstand­ing the clear provisions of the arbitration provisions under the Prospecting Licence Agreement and Ghana’s Alternative Dispute Resolution Act, Cassius Mining on February 3, 2023, instituted inter­national arbitration proceedings against the Government of Ghana in respect of the same subject matter, claiming almost US$300 million, under Article 3.1 of the UNCITRAL Arbitration Rules as adopted in 2021 (UNCITRAL Rules).


Joyceline Natally Cudjoe

An Entertainment Columnist, Content Writer, Blogger, Novelist, Poet, and a Publicist. For business or story tip off, contact me on +233 24 646 6866 or email: [email protected]

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