The Attorney-General, Godfred Yeboah Dame, has filed an 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.
The A-G is also restraining the company from taking any step whatsoever in international arbitration proceedings against the Government of Ghana until the arbitration instituted by Cassius Mining Limited against the Government of Ghana at the Ghana Arbitration Centre in 2018 has been heard and determined.
It would be recalled that earlier in the year, Cassius Mining instituted international arbitration against the Government of Ghana at the Permanent Court of Arbitration claiming about US$300 Million, which was suspended following objections by the Attorney-General.
Notwithstanding this, the Australian-owned company has made attempts at resorting to other international arbitration forum to pursue its quest of instituting international arbitration against Ghana.
Backing his application with many voluminous documents, the Attorney-General states, on 12th October 2016, Cassius Mining Limited applied for a prospecting licence from the Government of Ghana covering 13.791 km2 of the Gbane/Datoko area in Talensi, Upper East Region of Ghana. This was granted by the Government of Ghana on 28th December 2016 for a term of two years expiring in December 2018.
The A-G contends that clause 21 of the Prospecting Licence Agreement specifically required any question or dispute that arises regarding the rights, powers, duties and liabilities of the parties thereto, to be referred to arbitration in accordance with the Alternative Dispute Resolution Act, 2010 (Act 798) of Ghana.
In this regard, following allegations by Cassius Mining of what it considered to be unlawful and arbitrary actions by the Government of Ghana, the company by a letter dated 14th June 2018, notified the A-G of its referral of the dispute between the parties to arbitration under the auspices of the Ghana Arbitration Centre in accordance with the Minerals and Mining Act, 2006 (Act 703) and clause 21 of the Agreement between the parties.
On 26th June, 2018, the Australian-owned company indeed, referred the dispute to arbitration at the Ghana Arbitration Centre pursuant to clause 21 of the Prospecting Licence Agreement and the Alternative Dispute Resolution Act, 2010 (Act 798). It proceeded to file a Statement of Claim at the Ghana Arbitration Centre claiming a number of reliefs.
The A-G stated that on 9th January 2019, Ghana filed an answer to Cassius Mining’s Arbitration at the Ghana Arbitration Centre.
Following this, a three-member arbitral tribunal comprising Mr. Emmanuel Amofa, Mr. Kizito Beyuo, and Professor Albert Fiadjoe was duly constituted for the hearing of Cassius Mining’s claim.
Mr Dame says that, in spite of the pendency of the arbitration proceedings at the Ghana Arbitration Centre and in the face of the clear provisions of the arbitration provisions under the Prospecting Licence Agreement and Ghana’s Alternative Dispute Resolution Act, Cassius Mining on 3rd February 2023, instituted international arbitration proceedings against the Government of Ghana in respect of the same subject matter, claiming total amounts of almost US$300 Million, under Article 3.1 of the UNCITRAL Arbitration Rules as adopted in 2021 (UNCITRAL Rules).
The A-G observes that quite curiously, Cassius Mining titled the originating process “IN THE MATTER OF AN ARBITRATION UNDER A PROSPECTING LICENCE AGREEMENT DATED 28 DECEMBER 2016”. Cassius Mining proposed in that Notice of Arbitration, that the Secretary-General of the Permanent Court of Arbitration at The Hague (PCA) serve as the appointing authority for the said arbitration and that, the arbitration be administered by the PCA.
The Attorney-General submits that Cassius Mining instituted the international arbitration proceedings even though the “UNICTRAL Rules” is not referred to in the Prospecting Licence Agreement. Further, Cassius Mining knew that the Permanent Court of Arbitration is not mentioned in the Prospecting Licence Agreement and that, the Ghana Arbitration Centre has been administering the arbitration between the parties regarding the same Prospecting Licence Agreement as far back as 2019.
The A-G states further that, in a Response to the notice of arbitration dated 17th March, 2023, the Government of Ghana raised objections to the institution of the international arbitration by the Australian-owned mining firm and requested the tribunal to declare the proceedings instituted by Cassius Mining “a legal nullity and the arbitration terminated”. The A-G herein further indicated that he will raise a preliminary objection to the jurisdiction of the PCA in a bifurcated phase of the Arbitration to avoid unnecessary expenditures of time and costs for the Parties and the Tribunal.
The Permanent Court of Arbitration (PCA) on 20th March, 2023, invited Ghana to confirm whether it agrees to the PCA administering this arbitration, as proposed by the Claimant, Cassius Mining.
The Attorney-General by a letter dated 27th March, 2023, raised vehement objections to the jurisdiction of the PCA and asked the PCA to determine as a preliminary matter, whether it has jurisdiction in the matter or any role to play in the dispute between the parties.
The A-G states that “the clear abuse of process and reprehensible attempt at forum shopping was not lost on the Secretary-General of the Permanent Court of Arbitration”, as, by a letter to the parties dated 30 March 2023, the PCA decided that "the PCA Secretary-General may act as appointing authority under the UNCITRAL Rules if all parties so agree. The PCA understands that no such agreement has been reached in this matter".
The PCA further decided that there is no arbitral tribunal for the dispute constituted since the parties have not agreed.
The A-G asserts that the effect of the decision of the PCA is that the international arbitration commenced by Cassius Mining Limited under the UNCITRAL Rules could not proceed unless the parties including the Government of Ghana, had agreed for the Permanent Court of Arbitration to appoint a tribunal.
Given that the parties had not agreed (either in the Prospecting Licence Agreement or in any document) to submit the dispute between the parties to the jurisdiction of an international arbitration tribunal under the UNICTRAL Rules, it was clear that a dispute between the parties could never be submitted for determination by such a forum.
Faced with this legal stumbling block in the pursuit of international arbitration against Ghana, Cassius Mining instead of returning to Ghana to continue with the ongoing arbitration at the Ghana Arbitration Centre that the company itself had earlier instituted, instituted another international arbitration proceeding by purporting to file what it described as an “Amended Notice of Arbitration” this time entitled “IN THE MATTER OF AN ARBITRATION UNDER THE UNCITRAL ARBITRATION RULES (2021)”.
The A-G says that he has refused to respond to the Amended Notice of Arbitration as same is a nullity. Consequently, no arbitral tribunal has been constituted for the hearing of this new international arbitration.
The Attorney-General submits that the recourse by Cassius Mining to international arbitration is a gross abuse of process and most oppressive of the Government of Ghana as, in Clause 21 of the Prospecting Licence Agreement, the parties have agreed that their dispute “shall be referred to arbitration in accordance with the Alternative Dispute Resolution Act, 2010 (Act 798).” Nowhere have the parties agreed that their disputes would be resolved “UNDER THE UNCITRAL ARBITRATION RULES (2021)”.
The A-G observes that in both the original international Notice of Arbitration and Amended Notice of Arbitration, Cassius Mining has proposed that “the seat of arbitration be London”.
In the view of Mr. Dame, Cassius Mining clearly is keen on enabling the High Court of England & Wales to have supervisory jurisdiction over the arbitration instead of the courts of Ghana, as stated in Act 798 the agreement between the parties.
The A-G submits that, by Clause 21 of the Prospecting Licence Agreement entered into between Cassius Mining and the Government of Ghana, the arbitration law governing the resolution of disputes between the parties is the Alternative Dispute Resolution Act, 2010 (Act 798) which grants the High Court of Ghana the power to supervise the arbitral proceedings, and not the High Court of England and Wales.
The Attorney-General prays for an injunction to restrain the Australian-owned mining firm from pursuing any fresh international arbitration on the ground that this amounts to forum shopping. Mr. Dame submits that Cassius Mining’s forum shopping efforts also constitute an attempt to strip the High Court of Ghana of its statutory jurisdiction to supervise arbitration instituted domestically.
The A-G finally contends that unless restrained by the High Court of Ghana, the Australian-owned company will continue searching for an international forum that will support its breach of Clause 21 of the Prospecting Licence Agreement and undermine the domestic proceedings currently pending before the Ghana Arbitration Centre, which the company itself instituted way back in 2018.
The A-G contends that if the court does not restrain Cassius Mining, apart from condoning a blatant violation of the rights of the Republic of Ghana and a denial of the jurisdiction of the High Court of Ghana, the company’s forum-shopping activities will result in unnecessary cost and expense to the Government of Ghana.
The application filed by the A-G has been fixed for hearing at the Commercial Division of the High Court on Wednesday, 12th July 2023.
It remains to be seen what Cassius Mining’s response or next move will be.