The Catchment Area Community Alliance (CACA), in collaboration with private legal practitioner, Martin Kpebu, has called on government to immediately terminate the mining lease granted to Heath Goldfields Limited (HGL), citing what they describe as persistent breaches, financial incapacity and risks to Ghana’s mineral resources.
Addressing the media at a press conference held on Tuesday, Mr. Kpebu, who spoke on behalf of the group, urged the Minister of Lands and Natural Resources to act without delay.
“We respectfully urge the Honourable Minister to exercise his powers under Section 68 of Act 703 to terminate HGL’s mining leases without further delay,” he stated.
The press conference focused on developments at the Bogoso-Prestea mines in the Western Region, with CACA outlining a series of concerns regarding the company’s performance since it was granted the lease.
Mining Lease
According to the group, the mining lease was granted to HGL on December 13, 2024, during a transitional period when government had directed that such transactions should cease.
CACA noted that, at the time of the award, HGL had failed to meet key conditions, including the settlement of outstanding obligations to employees, the Ghana Revenue Authority (GRA), SSNIT, GRIDCo, VRA and local contractors.
Per the terms of the award, these obligations were to be settled within seven days after the notification of award in November 2024.
However, the group said these payments were not made within the stipulated period, raising early concerns about the company’s financial capacity.
CACA further disclosed that a report by the Minerals Commission in May, 2025 revealed that the mine was largely non-operational, contrary to commitments made by HGL under its development plan.
The report, according to the group, highlighted several deficiencies, including a non-functional process water treatment plant, a dilapidated tailings storage facility and the absence of visible mining activity on site.
The group also indicated that critical safety concerns were identified, including incomplete compliance tests on equipment and flooded underground sections of the mine.
Illegal mining activities were also said to have been detected in parts of the concession. Despite being issued with a 120-day notice by the Minerals Commission in June, 2025 to remedy these breaches, CACA maintains that HGL has failed to comply.
A major concern raised by the group relates to HGL’s financial capacity to operate the mine.
CACA noted that the company’s acquisition of the lease was based on a proposed $500 million investment, reportedly to be provided by a foreign partner.
However, the group said there is no publicly available evidence to demonstrate the existence of such funding or a firm commercial relationship to support the claim.
“Since the assignment of the leases, there is no publicly available evidence of such investment,” the statement noted, adding that this raises “reasonable grounds to believe that HGL lacks the financial capacity to manage the asset.”
The group also pointed out that several key commitments, including the procurement of critical equipment, rehabilitation of infrastructure and payment of legacy debts remain outstanding.
CACA further raised alarm over the technical state of the mine, particularly the failure to install a pumping system required to dewater underground sections.
According to the group, large portions of the underground mine remain flooded, posing serious operational and safety challenges.
The group also highlighted the failure to install a new crushing plant, noting that the current use of a mobile crusher does not provide the required production efficiency.
Additionally, the process water treatment plant has reportedly remained non-operational since December 2023, raising concerns about environmental and water management risks.
Financing Arrangement
The group also criticised a $65 million prepayment financing arrangement between HGL and Trafigura, arguing that the deal creates an unauthorised charge over Ghana’s mineral assets.
According to CACA, the agreement involves the use of the mining lease and related assets as collateral without prior ministerial approval or parliamentary ratification, contrary to legal requirements.
“Most alarmingly, HGL has encumbered the State’s mineral rights… without parliamentary ratification or prior ministerial consent,” Mr. Kpebu stated.
The group warned that the structure of the agreement exposes the State to significant risk, including the potential loss of control over strategic mining assets.
CACA argued that the situation mirrors the circumstances that led to the termination of the lease of the previous operator and warned against further delays in taking action.
The group stressed that the Bogoso-Prestea mine remains a critical economic asset that has historically supported livelihoods and local businesses in the Prestea-Huni Valley area.
“The people of Prestea are yearning for a capable and well-resourced investor to take over the operations of the mine,” Mr. Kpebu said
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