Ghana’s mining sector is likely to be hit with an international legal battle as Azumah Resources Ghana Limited has strongly denied reports that Engineers & Planners (E&P) has acquired its assets and taken control of the Black Volta and Sankofa Gold Projects.
After E&P issued a statement to announce the full takeover of the mine following an acquisition, Azumah Resources, in a counter-statement, described the reports as “false and without any legal basis.”
It further stressed that it remains the lawful owner and operator of the projects. The company categorically stated that no shares have been transferred to E&P or any other third party. This rebuttal sets the stage for what could escalate into a costly international arbitration battle.
Azumah announced plans to file an immediate application with the International Court of Arbitration to block what it described as E&P’s “unlawful seizure.”
The company warned that any such expropriation of private property would not only expose Ghana to claims exceeding US$1 billion under both national and international law, but also threaten the country’s reputation as a safe and predictable investment destination.
According to the foreign-owned company, only days ago, E&P had reportedly abandoned its claims against Azumah, a move that was widely seen as clearing the way for development of the Wa and Black Volta projects.
That resolution had even won international praise for Ghana at the Africa Down Under conference in Australia, where the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, assured global investors that the country was a model of stability.
Azumah, however, insists that E&P has now “defied that resolution by forcibly seizing the mine without legal basis,” an act it argues undermines both the Minister’s assurances and Ghana’s ability to guarantee the rule of law.
The unfolding events make the Black Volta Gold Project no longer just about mining; it is gradually becoming a subject of international legal tussle.
