A strong call has been made for the immediate abrogation of the Bogoso–Prestea mining lease, as the Catchment Area Community Alliance (CACA) intensifies pressure on the government over what it describes as “persistent breaches, weak financial capacity, and dangerous encumbrances” surrounding the mine’s current operator.

Addressing a press conference, legal counsel for the group, Lawyer Martin Kpebu, urged the Minister for Lands and Natural Resources to invoke provisions under the Minerals and Mining Act, 2006 (Act 703) to terminate the lease granted to Heath Goldfields Limited without delay.

CACA traced the origins of the current dispute to the termination of mineral rights previously held by Future Global Resources, which were revoked in accordance with Act 703 and related mining regulations. 

Following that revocation, the State—through the Minerals Commission—invited new investors from Ghana, China, and Turkey to submit proposals to revive the mine. 

Heath Goldfields, backed by Yildirim Group via its mining arm Yilmaden Holding, was selected based on what was described as the most technically sound and financially robust proposal, with assets reportedly exceeding $2 billion. 

However, CACA now argues that the very foundation of that decision has collapsed.

The group revealed that the mining lease was granted on December 13, 2024—during a transition period when government had directed a halt to major transactions, including mining agreements. 

More critically, key preconditions tied to the award—such as the payment of outstanding obligations to workers, the Ghana Revenue Authority, SSNIT, and utility providers—were not met before the lease was approved.

“This raises serious concerns about due process and compliance,” Martin Kpebu stated, insisting that the lease should not have been granted under those conditions.

Heath Goldfields’ winning bid was anchored on a $500 million investment plan from Yilmaden Holding, with an initial $150 million expected within the first 18 months to restart operations and settle debts.

But according to CACA, only about $23.7 million has been spent so far—far below projections—while there is no verifiable evidence of the promised funding arrangement.

Key commitments, including the installation of a gyratory crusher, dewatering of flooded underground shafts, and refurbishment of processing plants, remain unfulfilled. 

A report by the Minerals Commission has confirmed that the mine is largely non-operational, with critical infrastructure either dilapidated or inactive.

The tailings storage facility is in poor condition, the process water treatment plant has not been functioning since 2023, and large sections of the underground mine remain flooded. 

Safety concerns have also been raised, including the failure to conduct mandatory equipment tests and the presence of illegal mining activities within the central shaft.

These conditions led to a Stop Work Notice and a 120-day ultimatum for the company to remedy breaches—both of which CACA says were ignored.

Adding to the controversy is a $65 million prepayment financing agreement between Heath Goldfields and Trafigura.

CACA alleges that the deal places a sweeping charge over the mine’s assets—including the mining leases themselves—without parliamentary ratification or ministerial approval, in violation of Ghana’s laws.

The agreement reportedly allows the lender to enforce its rights and potentially take control of assets without prior judicial process, raising fears about the loss of national control over strategic mineral resources. 

For residents of the Prestea-Huni Valley Municipality, the situation has translated into economic hardship, unpaid worker entitlements, and rising illegal mining activities.

CACA argues that the continued operation of Heath Goldfields under these conditions threatens not only local livelihoods but also the integrity of Ghana’s mining sector.

Citing repeated breaches, unmet financial commitments, and what it describes as “reckless collateralization” of national assets, the group is demanding immediate government action.

“We respectfully urge the Minister to terminate the lease and initiate a transparent process to bring in a capable investor,” Martin Kpebu emphasized.

As the Minerals Commission continues its technical assessment, all eyes are now on the government’s next move—one that could determine the future of one of Ghana’s most strategic gold mining assets.

A fresh push has been made for the termination of the Bogoso–Prestea mining lease, as the Catchment Area Community Alliance (CACA) insists that ongoing regulatory reviews should lead to the immediate revocation of the contract held by Heath Goldfields Limited.

Speaking at a press conference, legal counsel for CACA, Martin Kpebu, said the current technical assessment by the Minerals Commission must result in decisive action by the Minister for Lands and Natural Resources.

According to him, the Commission’s ongoing review is aimed at determining whether Heath Goldfields has complied with the conditions outlined in the Notice to Remedy Breaches and the broader terms of its mining lease.

 However, he argued that available evidence already points to a clear conclusion.

“We are confident that the Minister will direct the termination of the lease since it is overwhelmingly clear that the company is not financially sound to manage the mine,” he stated.

CACA’s position is partly anchored in the circumstances surrounding the previous operator, Future Global Resources, whose lease was revoked after failing to meet statutory payments and creditor obligations.

Those liabilities, the group noted, were effectively inherited by Heath Goldfields, with strict timelines imposed—requiring negotiations and commencement of payments within days of the November 2024 award.

However, CACA claims that these obligations remain largely unpaid, raising serious questions about the company’s capacity to manage the asset and comply with regulatory requirements.

Legal Concerns Over $65 Million Trafigura Deal

Beyond operational and financial concerns, the group raised alarm over a $65 million financing agreement between Heath Goldfields and global commodities firm Trafigura.

CACA alleges that the arrangement violates both the 1992 Constitution and the Minerals and Mining Act, 2006 (Act 703), particularly provisions requiring parliamentary ratification of mining leases and ministerial approval before any encumbrance on mineral rights.

The agreement reportedly grants Trafigura a first-ranking charge over nearly all company assets, including bank accounts, infrastructure, and even the mining leases themselves.

More controversially, provisions within the deal allow enforcement actions—including asset seizure—without prior judicial process, raising fears that control over the mine could shift to a foreign lender without full state oversight.

“This creates a dangerous precedent where sovereign mineral assets could effectively be mortgaged without proper approval,” Martin Kpebu warned.

Financing Gaps Deepen Concerns

CACA further questioned the financial structure underpinning the lease, pointing to inconsistencies between the originally touted $500 million investment from Yilmaden Holding and a revised financing plan totaling $205 million from multiple sources.

Of that amount, the group said only $30 million—reportedly from a shareholder loan—has been disbursed as of late 2025, with no evidence of funding from other listed institutions.

Total expenditure on the mine so far is estimated at $23.7 million, a figure stakeholders say falls far short of what is required to revive operations at the strategically important asset.

Call for Decisive Government Action

CACA maintains that the combination of financial shortfalls, unmet obligations, and what it describes as unauthorized collateralization of national assets justifies immediate termination of the lease.

The group is urging the Minister to act under Section 68(2) of Act 703, arguing that continued occupancy of the lease by Heath Goldfields cannot be justified under current conditions.

“The people of Prestea are yearning for a capable and well-resourced investor,” Martin Kpebu said, appealing for swift intervention to restore confidence and unlock the mine’s economic potential.

As the Minerals Commission completes its technical assessment, attention now turns to the government’s next move—one that could redefine the future of the Bogoso–Prestea mines and the broader governance of Ghana’s mining sector.