Blue Gold withdraws suits in Ghana — Shifts focus to UK treaty arbitration
Blue Gold Limited has withdrawn its cases pending before the courts in Ghana to focus fully on international arbitration under the bilateral investment treaty between the United Kingdom and Ghana.
The company said the move was intended to concentrate its legal resources on what it considered a more appropriate forum for resolving its dispute with the Government of Ghana.
In a statement, Blue Gold indicated that it did not currently intend to pursue any other legal avenues in Ghana and would channel its efforts into the arbitration process.
The arbitration is being pursued under the UK-Ghana bilateral investment treaty. Blue Gold said it believed the process would provide an impartial determination of its claims.
The company, through its subsidiary Blue Gold Holdings Limited, is seeking damages in excess of US$1 billion alongside the previous owner of the mine, Future Global Resources Limited.
An inaugural Case Management Conference was recently held, during which procedural issues were addressed in line with the applicable arbitral rules.
Damages claim
Blue Gold said it would provide further updates on the outcomes of the conference and other material developments as permitted under the agreed procedures and relevant legal requirements.
Leadership of the company said the decision to withdraw the Ghana suits was strategic and aimed at ensuring a focused approach to the dispute resolution process.
“We believe that concentrating on the international arbitration will give us the most effective platform to present our claims and seek full recovery,” he said.
It added that the company remained open to a constructive and commercially reasonable resolution with the Government of Ghana.
“We remain committed to pursuing our claims while also engaging in discussions that could lead to a fair outcome for all parties,” he said.
Blue Gold described itself as a next-generation gold development company listed on Nasdaq under the ticker BGL. It said its strategy centred on acquiring and aggregating high-potential mining assets across strategic global jurisdictions.
Background to dispute
The company’s claim relates to a gold mining asset in Ghana, which it had sought to develop through its subsidiary.
The dispute follows regulatory and ownership issues surrounding the mine, which had previously been operated by Future Global Resources Limited.
Investor-state arbitration under bilateral investment treaties allows foreign investors to seek redress against host governments outside domestic courts. Ghana has signed a number of such treaties as part of efforts to attract foreign direct investment.
Blue Gold said it was seeking more than US$1 billion in damages, a sum that could have implications for the country’s fiscal position if awarded. The arbitration is expected to proceed in stages, including written submissions and hearings, before a final decision is issued.