The High Court in Accra has stopped Cassius Mining Limited, an Australian-owned mining Company from seeking international Arbitration against Ghana involving the sum of $300 million.
This follows an application for blocks injunction filed by the Attorney General, (AG), Godfred Yeboah Dame, for the court to restrain the Cassius Mining (Respondent) from embarking on what it described as “abusive process of forum shopping.”
Cassius Mining Limited, had intended to institute or pursue an arbitration outside the jurisdiction of Ghana under the Prospecting Licence Agreement dated 28 December, 2016 which has raised some disputes over the sum of $300M.
Ruling on the application on Monday, July 31, the last working day before the Judiciary embarked on a-two-month legal vacation, Justice Akua Sarpomaa Amoah, said “The respondent (Cassius Mining) is restricted from instituting any international arbitration or taking any steps to initiate an international arbitration until the arbitration initiated at the Ghana Arbitration Centre by the respondent if determined.”
The Courtbin it’s ruling observers that, Counsel for Respondent argued that it is not a citizen of Ghana and is not controlled by Ghana, however the company in its affidavit in opposition confirms that it is a company incorporated in Ghana and it is its mother company that is incorporated in Australia.
Justice Sarpomaa Amoah in her ruling said, there can be no doubt that the Respondent is a citizen of Ghana as it was incorporated under Ghanaian laws despite the fact that its mother company is incorporated in Australia.
The Court said, the two companies are separate and that the Respondent’s resort to international arbitration is a “misdirected step.”
“Arbitration agreement are like any other contract which are by law binding and enforceable,” Justice Sarpomaa Amoah ruled and said, “The Respondent cannot now be heard to say that a proper neutral avenue be chosen because it involves the government of Ghana.”
“The Respondent (Cassius Mining) has not shown that continuing with arbitration in this jurisdiction are arbitrary are justified.
“I think the applicant (Attorney General) has succeeded in showing that its application is not frivolous.
“The balance of convenience also tips in favour of the applicant as allowing the Respondent to resort to International Arbitration is not only arbitrary but will incur costs on the Ghanaian tax payers,” Justice Sarpomaa Amoah ruled.
The Court also ruled that, the Respondent has failed to demonstrate that it stands to suffer greater inconvenience if this application (for interim Injunction) is granted.
It said, it was because the Respondent considered that it will not suffer any unconvinced by the matter being determined in this jurisdiction that it submitted the first arbitration to the Ghana Arbitration Centre (GAC).
“Such conduct which infringes on the sovereignty of Ghana cannot be remedied. The Respondent is restricted from instituting any international arbitration or taking any steps to initiate an international arbitration until the arbitration initiated at the GAC by the respondent if determined.”
EIB Network’s Legal Affairs Correspondent, Murtala Inusah, reports that, the Court had earlier dismissed the Respondent’s preliminary objection against the AG’s motion for injunction.
AG’s motion for injunction
The Attorney General, Godfred Yeboah Dame, filed the application at the Commercial Division of the High Court, Accra seeking an order of interim injunction restraining Cassius Mining Limited, an Australian-owned mining company from instituting or pursuing any arbitration outside the jurisdiction of Ghana under the Prospecting License Agreement dated 28 December, 2.
Source: Kasapafmonline.com/Murtala Inusah