A major commercial dispute valued at about $740 million between Gold Fields Limited and a Ghanaian mining contractor is set to be resolved through arbitration, marking a significant escalation in the long-running disagreement.
The Johannesburg-listed gold producer confirmed in an update that its conflict with Engineers & Planners Company Ltd has now officially moved into arbitration proceedings.
According to the company, the contractor has already initiated the process, which will be conducted in Ghana rather than through an international arbitration body.
The dispute stems from claims raised by Engineers & Planners, whose Chief Executive Officer is the brother of Ghana’s President John Dramani Mahama. The contractor began formal dispute resolution steps in March, according to earlier statements from Gold Fields.
Engineers & Planners is seeking approximately $474.9 million in relation to operations at the Tarkwa mine and an additional $264.7 million connected to the Damang mining asset, according to company disclosures.
The contractor has argued that the claims relate to alleged underpayments for services rendered at both mining sites. It has maintained that it initially hoped for an amicable settlement and had expressed willingness to resolve the matter without proceeding to arbitration.
The company has worked with Gold Fields for over two decades, providing key mining services such as drilling, blasting, loading, and ore hauling across its Ghana operations.
While discussions were ongoing, Gold Fields has been pursuing the renewal of mining leases for Tarkwa, which are set to expire next year. In contrast, the company recently handed over control of the Damang mine to the Ghanaian state, which subsequently opened a bidding process that was won by Engineers & Planners.
A legal representative for the contractor confirmed the arbitration process but declined to comment further, noting that it is based on previously stated allegations.
Gold Fields, however, has maintained that it strongly disagrees with the claims made by the contractor. The company said in earlier communications that it remains focused on ensuring operational stability at the Tarkwa mine while the dispute is addressed.
The miner, which operates across Africa, South America, and Australia, produced around 2.5 million ounces of gold in the previous year, with Tarkwa contributing nearly one-fifth of that output.
Investigative Journalist & News Editor:
Contact: Editor@wesleyannews.com
Source: Wesleyannews.com
Do you have a story to share? Send it to our editorial team at editor@wesleyannews.com