A simmering corporate tussle over the ownership of Azumah Resources Ghana Ltd and its concessions in the Upper West Region has escalated into a potential international legal dispute that could cost Ghana more than US$1 billion in claims.
The controversy was reignited after Engineers & Planners (E&P), owned by businessman Ibrahim Mahama, announced it had successfully acquired Azumah Resources Ghana Ltd and Upwest Resources Ghana Ltd, securing rights to the Black Volta and Sankofa gold concessions.
However, Azumah Resources has vehemently denied any takeover, cautioning that the alleged unauthorised transfer of its assets could amount to expropriation. In a statement, the company warned that if Ghana’s regulators fail to resolve the matter, the country risks being dragged before the International Court of Arbitration.
The dispute stems from a 2023 agreement between private equity fund Ibaera and E&P, under which E&P was expected to pay about US$100 million to clear debts and invest in developing the mine. Critics, including Bright Simons of IMANI Africa, allege that E&P failed to fulfil these financial obligations but still managed to orchestrate a transfer of Azumah’s shares with the backing of the Minerals Commission.
E&P’s legal counsel, Bobby Banson, has pushed back strongly, branding Simons’ claims as “dishonest” and dismissing suggestions that Ibaera still holds shares in Azumah Resources. He insisted that E&P’s ownership is legitimate and final.
Analysts say the case, if escalated, could dent investor confidence in Ghana’s mining sector, which is already under scrutiny from global financiers. Industry observers warn that a protracted arbitration battle may not only lead to hefty financial penalties but also damage Ghana’s reputation as a safe destination for foreign investment.
