A statement from Azumah Resources – a party in the impasse over Black Volta gold mine – has confirmed that it has begun mutual negotiation with Engineers and Planners (E&P) for a resolution.
It described the engagement as ‘confidential’ and ‘in good faith’ as the discussions are based on “. applicable laws, commercial norms and in consultation with the appropriate regulatory bodies.”
The headway falls in line with the ultimatum given by the Minister of Land and Natural Resources, Emmanuel Armah-Kofi Buah, some days ago, directing both parties to resolve their differences amicably within seven days, warning that failure to do so will result in a governmental decision “in the best interest of the country”.
However, the minority in Parliament has raised concerns over the case, indicating that the dispute poses economic, legal and political risks.
“The unresolved standoff between E&P and Azumah Resources over the Black Volta gold mine is already affecting Ghana’s economy and international image”, Kwaku Ampratwum-Sarpong, MP for Mampong said in a statement last week.
“This mine holds the potential to generate hundreds of direct jobs and thousands more indirectly.”
The Minority further warn that delays in resolving the impasse mean missed royalties, stalled development funds, and uncertainty for other mining investors looking at Ghana.
They argue that the impasse has stalled vital mining activity in the Upper West Region, depriving communities and the state of critical economic benefits.
In a period of economic restructuring, such opportunity costs are hard to justify.
Politically, the Minority raised concerns about conflicts of interest due to E&P’s perceived links to power. Its founder and Chief executive Ibrahim Mahama is the brother of Ghana’s incumbent President John Dramani Mahama
“It is as much for the benefit of E&P and its eminent founder that such concerns be properly and effectively managed,” Mr Ampratwum-Sarpong said, warning that institutions like the ECOWAS Bank for Investment and Development (EBID) must also observe the ‘do no harm’ principle in ongoing litigation.
The Caucus has posed six detailed questions to the Minister of Lands and Natural Resources and insists Parliament must be fully involved before any resolution is finalised.
“Let this Parliament not be found wanting,” they concluded. “We must uphold the rule of law and protect Ghana’s international standing as a stable mining jurisdiction.”
The future of Ghana’s highly anticipated US$100 million Black Volta Gold Project (some analysts have revalued it at US$300 million based on the recent surge in gold prices) hangs in the balance, if the Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, ultimatum is not met by the two companies embroiled in a dispute over its acquisition.
In a press release issued days ago, Mr Buah ordered Azumah Resources Limited as well as Engineers & Planners (E&P) to resolve their differences amicably within seven days, warning that failure to do so will result in a governmental decision “in the best interest of the country”.
This directive injects a new level of urgency into a dispute that threatens the timely commencement of what has been slated to be Ghana’s first large-scale, wholly indigenous gold mining operation.
The Black Volta Gold Project, a significant venture with US$100 million in financing from the ECOWAS Bank for Investment and Development (EBID) for its acquisition by E&P, has been hailed as a landmark in Ghanaian-led participation in the extractive sector.
The minister’s statement, addressed to both companies, explicitly acknowledged “earlier correspondence” and “various press releases and public statements” that have circulated concerning the dispute.
This suggests a growing public awareness and potential concern over the impasse, which could derail a project championed for its potential to drive local ownership and economic development.
“I have decided to grant the parties a final period of seven (7) days within which to resolve the matter amicably. Should this period elapse without a mutually agreed resolution, a decision shall be taken in the best interest of the country,” Mr Buah’s statement read, underscoring the government’s determination to see the project proceed.
While the specifics of the dispute between Azumah Resources and E&P were fully detailed in the minister’s release, it is understood to revolve around the acquisition process and potentially lingering financial claims or operational aspects related to the Black Volta Gold Project.
Azumah Resources, an Australian gold exploration and development company, has historically held significant interests in the Wa-Lawra region of Ghana, where the Black Volta Project is located.
E&P, a prominent Ghanaian-owned engineering and construction firm led by Ibrahim Mahama, President John Dramani Mahama’s brother, entered the scene with its ambitious acquisition plans.
The Minister’s firm stance also included a direct appeal for restraint: “I strongly urge all parties to refrain from addressing this matter through the media and instead focus on constructive dialogue and responsible engagement.”
This acknowledges that the dispute has already spilt into the public domain through various channels, potentially complicating resolution efforts.
To facilitate a swift resolution, the Minister has directed the Minerals Commission, Ghana’s mining sector regulator, to “facilitate and support the parties in resolving their difference in order to ensure the timely commencement of the project.”
The Minerals Commission is mandated to advise the government on mineral policy and ensure compliance with mining laws and regulations.
Their involvement is crucial in mediating such high-stakes disputes.
The Black Volta Gold Project is expected to significantly boost Ghana’s gold output and local content in the mining sector.
Ghana is Africa’s largest gold producer, with an annual output exceeding 4.2 million ounces in 2023. Production is expected to reach up to 5.1 million ounces in 2025. Projects like the Black Volta are seen as vital for increasing value retention within the country, fostering job creation, and strengthening the national economy.
Delays in such projects due to corporate disputes can have significant economic ramifications, impacting investor confidence and revenue projections.
All eyes will now be on Azumah Resources and Engineers & Planners this week to see if they can reach a mutually agreeable settlement.
Failure to do so would trigger direct intervention from the Ministry, with potentially far-reaching implications for the future of the Black Volta Gold Project and the companies involved.
