International Arbitration Tribunal Rules in Favor of Ghana’s High Court

In a landmark decision on February 28, 2024, an International Arbitration Tribunal has ruled that the ongoing dispute between Cassius Mining Company Limited and the Government of Ghana must be conducted before the High Court in Ghana, rather than in London, United Kingdom.

The arbitration proceedings, which have been ongoing since February 2023, were initiated by Cassius Mining seeking compensation of approximately US$300 million for alleged breaches of contract and Ghana’s mining laws. The company claimed that the Government of Ghana failed to extend the term of its Prospecting Licence Agreement (PLA), which allowed it to prospect for gold.

The ruling, which was based on preliminary issues argued by the Attorney-General and Minister of Justice, Godfred Yeboah Dame, and lawyers representing Cassius Mining, signifies a significant shift in jurisdiction. It establishes that the High Court of Ghana has supervisory jurisdiction over the arbitration and can grant reliefs regarding the proceedings.

This decision marks the first time since 2003 that an international arbitration tribunal has recognized the jurisdiction of Ghanaian courts in a dispute involving the Government of Ghana. Previously, tribunals had upheld the jurisdiction of courts in the UK, France, the Netherlands, and Washington D.C., leading to costly legal battles for the Government of Ghana.

Attorney-General Godfred Yeboah Dame has expressed his intention to challenge the constitutionality of the PLA through the power of the High Court, emphasizing the importance of upholding Ghana’s laws in international disputes.

Despite attempts by Cassius Mining to avoid the jurisdiction of the High Court, including seeking arbitration under the Permanent Court of Arbitration in the Hague and arguing against the application of the Alternative Dispute Resolution Act, the tribunal’s ruling reaffirms Ghana’s legal authority in the matter.

The decision comes after extensive written submissions and an oral hearing in December 2023, during which the Attorney-General personally defended Ghana’s position. Cassius Mining was represented by both international and Ghanaian law firms.

This ruling underscores the importance of respecting the jurisdiction of Ghana’s High Court in international disputes and sets a precedent for future arbitration cases involving the Government of Ghana.