Akonta Mining Company Limited and its owner, Bernard Antwi-Boasiako, lost a significant lawsuit in 2019, with the High Court ruling against their claims of trespass and extortion by state agencies. The court found that the company, despite holding a prospecting license, engaged in illegal small-scale gold mining, or 'galamsey', involving foreign nationals. This judgment, delivered on January 18, 2019, at the Automated High Court, Sekondi, dismissed claims for US$43,266,365.02 in damages and GHS 70,000.00 in alleged extortion, affirming the state's right to intervene in illegal mining activities under statutory environmental mandates and public necessity.
The lawsuit, Akonta Mining Company Limited & 4 Others v. The Attorney General & 3 Others (Suit No. E12/51/13), centered on actions taken by state security agencies in May and June 2013. These actions included destroying camp structures and seizing heavy equipment on Akonta Mining's concession. The company alleged state trespass, unlawful conversion, physical looting, and extortion. However, the High Court determined that a prospecting license holder engaged in unapproved, illegal small-scale gold mining cannot sue state actors intervening in the public interest.
This ruling highlights Ghana's ongoing struggle against illegal mining, known locally as 'galamsey', which has severely damaged the environment, particularly water bodies and forest reserves. The government has intensified efforts to combat this menace, deploying task forces and implementing stricter regulations. This case underscores the judiciary's role in upholding environmental protection laws and supporting state interventions against illicit resource extraction, a critical issue for Ghana's economic stability and sustainable development.
The defendants, including the Attorney General, the Chief of Defence Staff, the Inspector General of Police, and Victor Samuel Meisu, the Chief Executive of the Wassa Amenfi West District Assembly, denied all claims. They argued that Akonta Mining was illegally mining gold, not merely prospecting, and had severely polluted the Tano River. Defence witnesses, including District Mining Officer Anthony Worlali, testified that Chairman Wontumi employed over 100 Chinese nationals for small-scale mining operations, confirming the illegal nature of the activities.
The judgment reinforces the government's resolve to tackle illegal mining, sending a clear message to other mining entities. It indicates that holding a prospecting license does not grant immunity from prosecution if illegal activities are conducted. Future legal challenges related to mining are likely to reference this precedent, influencing how both state agencies and mining companies operate. This decision will be closely watched by environmental activists, local communities, and investors in Ghana's mining sector.
The case endured a lengthy trial process, passing through four different High Court judges before its final conclusion. Her Ladyship Justice Georgina Mensa-Datsa J, His Lordship Justice Paul Utter Dery J, and His Lordship Justice Edward Amoako Asante J all presided over parts of the proceedings. His Lordship Justice Richard Adjei-Frimpong J ultimately delivered the final written judgment on January 18, 2019. The plaintiffs sought extensive declaratory, restitutionary, and compensatory reliefs, including US$43,266,365.02 in special damages for stolen gold, looted cash, burnt equipment, and a destroyed vehicle assembly plant. They also sought GHS 70,000.00 for alleged extortion. The court rejected all these claims.