Ghana Reaffirms Mining Stability as $100m Black Volta Gold Project Faces Dispute

Ghana Reassures Investors Amid Black Volta Gold Project Dispute

Ghana’s Lands and Natural Resources Minister, Armah-Kofi Buah, has moved to reassure international investors that the country remains a stable and attractive mining destination, despite a legal dispute delaying development of the Black Volta gold project.

Speaking at the Africa Down Under conference in Perth on Thursday, Buah emphasized that the matter should be kept in perspective.

“In my presentation, I was very clear about the number of companies operating happily in Ghana. I talked about the ten largest companies, five of which are active in Ghana, including Australian companies,” he said.

He acknowledged the ongoing dispute involving Azumah Resources, which began in 2023, but stressed that the new government, in office since 2025, is committed to resolving it:

“It is an isolated case that is being dealt with,” Buah noted, while acknowledging Azumah’s frustrations.

Buah’s comments followed a strong warning from Ibaera Capital partner James Wallbank, whose fund is the major shareholder in Azumah.

Wallbank praised Ghana’s geological potential and skilled workforce but cautioned that policy changes and legal uncertainty were eroding investor confidence.

Azumah’s Black Volta project—a rare build-ready gold mine with the potential to produce 138,000 ounces annually over 12 years—has stalled amid litigation with local mining contractor Engineers & Planners.

“At the micro level, this is just a simple dispute between Azumah and a contractor,” Wallbank said. “But at the macro level, this is about how Ghana’s push for greater local participation is impacting the ability of international investors to operate.”

He pointed to recent government initiatives requiring mines to use majority Ghanaian-owned contractors, proposals to cut mining lease terms from 30 years to 15, and suggestions that arbitration could shift from international tribunals to local courts.

“Individually, none of these changes are necessarily wrong,” Wallbank added. “But together they create uncertainty, and that is dampening investor appetite for Ghana.”

Azumah has invested more than $100 million in feasibility studies and approvals for Black Volta, which Wallbank estimates could deliver more than $1 billion in net present value at current gold prices.

The project is also expected to generate jobs, taxes, royalties, and community investments in Ghana’s Upper West Region.

“This area will become the factory of the future for the northwest of Ghana,” Wallbank said. “It will be a major employment and skills development hub.”

However, with litigation stalling progress, Ghana is estimated to have already lost $721 million in potential revenues.

The dispute highlights the broader challenge facing many African governments: how to maximize local participation and value creation without undermining investor confidence.

At the Perth conference, resource nationalism emerged as a dominant theme, with several speakers noting that new mining codes across West Africa are increasing taxes, strengthening state control, and raising local content requirements.

Wallbank acknowledged the legitimacy of these goals but stressed the need for balance:

“There is no question about the international support for governments maximizing local benefits. The issue is how you achieve that without creating uncertainty that deters investment.”

Minister Buah, for his part, reaffirmed Ghana’s commitment to responsible resource development and pledged to resolve the Azumah dispute in a manner that safeguards the country’s reputation as a mining destination of choice.