Key Points
- Cassius Mining claims Ghana’s actions ended its gold project.
- The miner alleges illegal encroachment by China-controlled Earl International.
- Arbitration aims to recover $277M in lost profits and damages.
The Australian mining company Cassius Mining Ltd. (ASX: CMD) has filed a $277 million action against Ghana at the London Court of International Arbitration, claiming that the Gbane gold project was terminated due to contract violations. A Chinese business that operates close may be involved in the case.
Cassius Mining files $277M arbitration claim against Ghana
Cassius claims Ghana lost out on the chance to develop the 13.8-square-kilometer Gbane gold concession in northeastern Ghana and lost out on income as a result of its failure to renew its prospecting license. Under a new law, Ghana halted the project in 2019 on the grounds that it did not comply with constitutional standards.
According to the corporation, Ghana’s actions prevented it from reaping the full benefits of its project. In a news release on Dec. 23, Cassius stated that the filing contains expert studies, witness statements, and claims for damages.
As stated by North Miners, the Shaanxi gold mine, run by the Chinese-controlled Earl International Group, lies next to the Gbane project. Cassius claims Ghana ignored the Chinese company’s unlawful extraction of millions of dollars’ worth of gold from its concession.
Dispute with Chinese company Earl International intensifies over encroachment
A history of disagreements with Earl International is also brought to light by the legal challenge. Cassius alleges that Earl dug hundreds of meters inside its concession and that the firm used extreme measures, such as the release of noxious gas, to discourage small-scale miners, which is said to have murdered sixteen people.
With almost 60 miners allegedly dead at its locations since 2013, Earl International has been accused of safety violations. Requests for comment outside of business hours have not received a response from the court or Ghana’s Land and Natural Resources Ministry.
To bolster its claim, Cassius is collaborating with arbitration experts AMC Consultants, located in Perth, and Secretariat, located in Washington, D.C. “We are eager to advance the case and secure a favorable result for shareholders,” stated Managing Director David Chidlow.
Cassius shares increased from 0.9¢ to A1.3¢ after the filing, bringing the company’s market value to A$9.2 million ($8.2 million).
