CACA demands termination of Bogoso-Prestea lease over breaches
Bogoso-Prestea catchment communities have called for the immediate termination of the mining lease granted to Heath Goldfields Limited for the Bogoso-Prestea mines, citing breaches of contractual, financial and regulatory obligations.
The Catchment Area Community Alliance (CACA) said the company had failed to meet critical investment targets of $500 million, settling outstanding liabilities and complying with conditions precedent tied to the award of the lease.
Addressing a press conference in Accra last Tuesday, April 21, the lawyer for CACA, Martin Kpebu, on behalf of the leadership of CACA, said the circumstances surrounding the operations of the mine warranted urgent intervention by the Minister of Lands and Natural Resources.
He said the lease was awarded on the basis of a $500 million investment commitment by Yilmaden Holdings, the majority shareholder, to be injected over five years.
He explained that the first phase required $150 million within the first 18 months, including an initial $50 million expected in the last quarter of 2024 and a further $100 million in 2025.
“What we have seen so far is a total expenditure of $23.7 million,” he said.
He broke down the figure as $12.8 million for ex-employee salaries and provident funds, $2.7 million for legacy supplier debts and $8.2 million for preparatory works and infrastructure.
“That is far below the $150 million that should have been invested by the end of 2025,” he added.
Reneging on commitment
Mr Kpebu said the company had departed from the original $500 million commitment and was now presenting a revised $205 million investment plan.
He said the revised financing structure included a $30 million shareholder loan, a $65 million facility from Trafigura - a supplier of commodities company, $100 million expected from the Equans Bank for Investment and Development, $5 million from First Atlantic Bank and $6 million from GT Bank.
“As of November 2025, only the $30 million shareholder loan had been disbursed. There is no record of funds from the other sources,” he said.
He added that the $65 million Trafigura deal involved a prepayment arrangement for 700,000 ounces of gold and placed extensive charges over the company’s assets.
Collateralisation
Mr Kpebu further explained that the Trafigura agreement granted a first-ranking charge over the company’s bank accounts, revenues, mining infrastructure and leases.
He said that the arrangement allowed the lender to enforce its rights and take control of the assets without prior judicial process in the event of default.
“This effectively means the mining lease, which is a national asset, has been used as collateral without the required approvals,” he said.
He added that the agreement was executed without prior consent from the minister, contrary to the Minerals and Mining Act, 2006 (Act 703), and without parliamentary ratification as required under the 1992 Constitution.
Employee entitlements
Mr Kpebu said conditions tied to the award of the lease required the company to settle all employee-related obligations within seven days after the notification of award on November 14, 2024.
He said payments, which included salaries, end-of-contract benefits and provident funds, were only partially made in December 2025.
“SSNIT Tier Two contributions and severance packages remain unpaid,” he said.
On operations, Mr Kpebu said key components of the mine remained non-functional, including the process water treatment plant, which had been idle since December 2023.
He said a $2 million pumping system meant to dewater the underground mine had not been procured more than a year after it was scheduled, leaving large sections flooded.
He added that critical equipment valued at about $8.8 million, including crushers, pumps and mill liners, had not been delivered or installed.
“The mine is still flooded and essential equipment has not been provided,” he said.
Mr Kpebu said the tailings storage facility was full and continued deposition posed a risk to nearby communities such as Dumasi and Bogoso.
He said incomplete embankments and delays in construction works, attributed to outstanding debts to contractors, had worsened the situation.
“This creates the risk of overflow or dam failure, which could affect downstream communities,” he said.
Call
CACA said the pattern of unmet obligations, financing inconsistencies and operational failures showed that the company lacked the capacity to manage the mine.
They urged the Lands Minister to invoke provisions under Section 68 of the Minerals and Mining Act to terminate the lease.
“We should go back to the market and get a properly resourced investor who can deliver on the promise of jobs and development,” Mr Kpebu said.
He added that the Bogoso-Prestea mine remained a strategic national asset that must be managed in the interest of the country and host communities.
