Permanent Court of Arbitration Rules Ghana's Laws Apply in $300 Million Mining Dispute

The Permanent Court of Arbitration in The Hague has ruled that Ghana's laws apply to a $300 million international arbitration case brought by Australian mining company Cassius Mining against the government of Ghana. The case involves an alleged breach of contract and mining laws by the Ghanaian government for not renewing Cassius Mining's prospecting license.

The international tribunal determined that the dispute will be resolved under Ghanaian law, rather than through international arbitration. The court ruled that the arbitration proceedings must be conducted before a High Court in Ghana, and not in London as Cassius Mining had wanted.

Ghana's Attorney-General and Minister of Justice, Godfred Yeboah Dame, argued that the High Court of Ghana retains supervisory jurisdiction over the arbitration. The tribunal upheld this position, stating that any resulting award or "judgment debt" is subject to Ghanaian laws and can be set aside by the High Court.

This marks the first time since 2003 that an international arbitration tribunal has ruled the High Court of Ghana has jurisdiction in such a case involving the Ghanaian government, rather than courts in other countries. The Attorney-General intends to seek a determination on the constitutionality of the original prospecting license agreement using the High Court's powers.

Why this matters: The ruling affirms the jurisdiction and sovereignty of Ghana's legal system in international disputes involving the country's natural resources and contracts with foreign companies. It sets a precedent for similar cases and could impact foreign investment in Ghana's mining sector.

The tribunal rejected the government of Ghana's contention that it had no jurisdiction to entertain the action, but also refused to stay the arbitration proceedings. The dispute, which began in 2018, has taken various legal turns, with the Accra High Court previously placing an injunction on Cassius Mining to prevent it from pursuing international arbitration.

In his arguments, Attorney-General Godfred Yeboah Dame asserted, "The High Court of Ghana retains supervisory jurisdiction over the arbitration, and any resulting award or 'judgment debt' is subject to Ghanaian laws and can be set aside by the High Court." The Permanent Court of Arbitration's ruling aligns with this position, ensuring that Ghana's legal framework will be applied in resolving the high-stakes mining dispute.

Key Takeaways

• Permanent Court of Arbitration rules Ghana's laws apply to $300M mining dispute.
• Dispute to be resolved under Ghanaian law, not international arbitration as Cassius Mining wanted.
• Arbitration proceedings must be conducted before Ghana's High Court, not in London.
• Ruling affirms jurisdiction and sovereignty of Ghana's legal system in such disputes.
• Sets precedent for foreign investment in Ghana's mining sector going forward.