Heath Goldfields Limited is facing growing regulatory and legal scrutiny after reports emerged that the company used its Bogoso-Prestea mining leases as collateral to secure a $65 million financing arrangement without obtaining prior approval from the Government of Ghana.
According to a confidential memorandum, the transaction is believed to be in breach of Ghana’s mining laws, particularly provisions under the Minerals and Mining Act, 2006 (Act 703), which require ministerial consent before any mineral right can be transferred, assigned, mortgaged, or otherwise encumbered.
Legal basis
The memorandum, which outlines the legal basis for possible regulatory action against the company, states that the three mining leases granted to Heath Goldfields may be subject to revocation on multiple grounds, each described as independently sufficient under Ghana’s mining regulatory framework.
It further indicates that the leases were granted clearance by the Minerals Commission on or about 13 November 2024 following a technical and financial assessment, with the company submitting a long-term Strategic Mine Development Plan covering operations through to 2039. However, the document alleges that the leases have not yet been submitted to
Parliament for ratification as required under Article 268(1) of the 1992 Constitution and Section 5(4) of Act 703, a requirement it describes as mandatory for the validity of mining concessions.
A key concern raised in the memorandum relates to the alleged creation of a charge over the mining leases without prior written approval from the Minister. The document argues that such an arrangement constitutes an encumbrance under Section 14(1) of Act 703 and is therefore unlawful, as ministerial approval is a legal prerequisite for any such transaction involving mineral rights.
Operational compliance
Beyond the financing arrangement, the memorandum also raises serious concerns about operational compliance at the Bogoso-Prestea site. It claims that inspections carried out by the Minerals Commission in May 2025 revealed a complete absence of active operations, despite the company’s obligations under its approved development plan. It also cites the deteriorated state of the tailings storage facility, a non-functional process water treatment plant, and widespread encroachment by illegal miners on portions of the concession.
The document further alleges breaches involving the movement of gold-bearing concentrates without the necessary approvals, non-payment of staff salaries, and what it describes as broader financial and operational distress within the company.
According to the memorandum, regulatory authorities issued a Stop Work Notice in June 2025, followed by a 120-day remediation directive. However, it states that the company failed to comply within the stipulated timeframe, prompting further regulatory concern.
Acts of violations
On the legal front, the document argues that the cumulative breaches amount to serious violations under Sections 68 and 69 of Act 703, which empower the Minister of Lands and Natural Resources to suspend or revoke mining leases in cases of non-compliance, failure to implement approved mining programmes, or breach of statutory conditions.
It further contends that the failure to obtain parliamentary ratification renders the leases constitutionally deficient, while the alleged unauthorised encumbrance of the mineral rights is described as void from inception under Ghanaian law.
The memorandum adds that the combined infractions—spanning constitutional, statutory, financial, and operational breaches, fundamentally undermine the legal basis of Heath Goldfields’ rights over the Bogoso-Prestea concession and could justify the revocation of the three mining leases.
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