Pressure is mounting on the Minister for Lands and Natural Resources to terminate the Bogoso–Prestea mining lease, as the Catchment Area Community Alliance (CACA) intensifies calls for decisive government action.
At a press conference, CACA’s legal counsel, Martin Kpebu, expressed confidence that the ongoing technical review by the Minerals Commission would lead to the revocation of the lease held by Heath Goldfields Limited.
According to him, the Commission’s assessment is to determine whether the company has complied with directives outlined in a Notice to Remedy Breaches, as well as the broader conditions of its mining lease. However, he argued that the outcome is already evident.
“We are confident that the Minister will direct the termination of the lease since it is overwhelmingly clear that the company is not financially sound to manage the mine,” he stated.
CACA’s concerns stem partly from the troubled history of the mine. The previous operator, Future Global Resources, had its lease revoked after failing to meet statutory payments and creditor obligations. Those liabilities were subsequently inherited by Heath Goldfields, with strict timelines imposed for settlement following the award of the lease in November 2024.
However, the alliance maintains that these obligations remain largely unpaid, raising serious doubts about the company’s financial capacity and operational readiness.
The group also raised legal concerns over a $65 million financing agreement between Heath Goldfields and global commodities firm Trafigura. CACA argues that the deal potentially breaches provisions of the 1992 Constitution of Ghana and the Minerals and Mining Act, 2006 (Act 703), particularly those requiring parliamentary ratification and ministerial approval before mineral rights can be encumbered.
The agreement reportedly grants Trafigura sweeping control through a first-ranking charge over key company assets, including bank accounts, infrastructure, and even the mining lease itself. More controversially, CACA alleges that the deal allows enforcement actions such as asset seizure without prior judicial process—raising fears of foreign control over strategic national resources.
“This creates a dangerous precedent where sovereign mineral assets could effectively be mortgaged without proper approval,” Kpebu warned.
Further deepening concerns are apparent inconsistencies in the company’s financing structure. CACA pointed to a gap between an initially touted $500 million investment from Yilmaden Holding and a revised financing plan totaling $205 million. Of that amount, only about $30 million—reportedly from a shareholder loan—has been disbursed as of late 2025, with no clear evidence of additional funding from other sources.
Total expenditure on the mine so far is estimated at $23.7 million, a figure stakeholders argue is insufficient to revive operations at the strategically significant asset.
CACA insists that the combination of financial shortfalls, unmet obligations, and what it describes as unauthorized collateralization of national assets justifies immediate termination of the lease under Section 68(2) of Act 703.
“The people of Prestea are yearning for a capable and well-resourced investor,” Kpebu added, urging swift intervention to restore confidence and unlock the mine’s economic potential.
As the Minerals Commission concludes its technical review, attention is now firmly on the government’s next move—one that could shape the future of the Bogoso Prestea mine and set a precedent for governance in Ghana’s mining sector.
