Expired 120-day notice, unresolved breaches haunt Heath Goldfields

Heath Goldfields Limited (HGL) is facing mounting pressure as unresolved operational and safety breaches continue to haunt the company following the expiry of a 120-day statutory notice at the Bogoso-Prestea mine.

The Catchment Area Community Alliance (CACA), in collaboration with a private legal practitioner, Martin Kpebu, has drawn attention to the company’s compliance status under Section 68 of the Minerals and Mining Act, 2006 (Act 703).

Addressing a press conference in Accra, Mr. Kpebu stated that the notice, issued on June 23, 2025, required HGL to address a range of critical issues, including mine safety concerns, underground flooding, unpaid statutory obligations, failure to rehabilitate key infrastructure and delays in executing its Strategic Mine Development Plan.

According to the group, several months after the deadline elapsed, many of the identified breaches remain unresolved. Parts of the underground workings at the Prestea mine are still flooded, while the Tailings Storage Facility remains incomplete. The Process Water Treatment Plant is also said to be largely nonoperational, with key machinery—including the gyratory crusher and pumping systems—yet to be procured or installed.

The statutory notice, he noted, was intended to give the company a defined window to restore compliance or face potential sanctions, including the possible termination of its mining leases.

Breaches

However, several months after the expiration of the notice period, stakeholders say there is little evidence to suggest that the key issues identified have been adequately addressed.

Available information indicates that sections of the underground mine at Prestea remain flooded, raising ongoing safety and operational concerns. The Tailings Storage Facility, critical for managing mining waste, is yet to be completed, while the Process Water Treatment Plant remains largely non-operational, limiting the company’s ability to effectively manage water discharged from mining activities.

In addition, reports say major operational equipment, including the gyratory crusher and essential pumping systems required to dewater the mine, are yet to be procured or installed. These gaps, according to the group, continue to hinder any meaningful resumption of full-scale mining operations at the site.

Regulators

As a result, the situation has also drawn attention to the role of regulators, particularly the Minerals Commission, which has only recently been tasked to undertake a fresh technical inspection of the mine. The inspection, initiated within the last two weeks, is expected to assess the extent to which HGL has complied with the remedial directives outlined in the expired notice.

The group also notes that the timing of this exercise has raised questions among stakeholders, as the inspection comes several months after the deadline for compliance had already passed. They note that many of the safety and operational deficiencies cited in the notice were not new and had been documented prior to the issuance of the directive, making the delay in follow-up enforcement a point of concern.

According to reports, findings from the ongoing technical assessment are expected to play a decisive role in informing the next course of action by the Minister of Lands and Natural Resources, particularly regarding the future of the Bogoso-Prestea mining leases held by HGL.

The Alliance also raised serious concerns over the operational capacity and conduct of Heath Goldfields Limited (HGL), stating that evidence available pointed to significant shortcomings in the company’s management of the Bogoso-Prestea Mines.

Gaps

According to the alliance, the situation reflects gaps in technical competence, financial capacity and adherence to commitments made at the time the company secured its mining lease on December 13, 2024. CACA noted that HGL’s acquisition of the lease was backed by a set of ambitious assurances, including a proposed US$500 million investment from Yilmaden Holdings, the prompt settlement of employee entitlements and legacy debts, accelerated rehabilitation of critical infrastructure, and a phased restart of mining operations.

However, more than sixteen months after assuming control, the group says these commitments have largely not materialised. It points out that the underground sections of the mine remain flooded, while key operational equipment such as the gyratory crusher are yet to be installed, limiting any meaningful progress toward full operations.

The group further indicated that outstanding financial obligations remained a major concern, citing delays in payments to employees as well as statutory institutions such as SSNIT and GRA, in addition to local contractors. It also highlighted the continued presence of illegal mining activities in sections of the concession that had been left inactive.

Repayment concerns

The Alliance additionally raised concerns over a reported $65 million prepayment facility involving Trafigura, which it claimed had resulted in encumbrances on the State’s mineral rights. According to the group, this arrangement was undertaken without parliamentary ratification or prior ministerial approval, raising questions about compliance with provisions of the Minerals and Mining Act, 2006 (Act 703) and the Constitution.

The group argues that the emerging pattern of challenges bears similarities to issues that led to the exit of the mine’s previous operator, and has called for urgent action to safeguard the long-term viability of the asset.

It has therefore urged the Minister of Lands and Natural Resources to consider invoking the relevant provisions under Section 68 of Act 703 to terminate HGL’s mining leases, while advocating for a transparent process to identify a new investor with the capacity to manage the operations effectively.

CACA maintains that such measures are necessary to protect the interests of communities within the Prestea-Huni Valley area, ensure the safeguarding of national revenue, and uphold standards within Ghana’s mining sector.