The Africa Centre for Energy Policy (ACEP) has disclosed that Abosso Goldfields Limited has initiated legal proceedings against the government’s decision not to renew its Damang gold mine lease.

The government rejected the company’s application and directed it to cease operations and vacate the site by the end of Friday, April 18.

However, ACEP has cautioned the government about the move.

In an interview on Citi FM’s Eyewitness News on Thursday, April 17, ACEP’s Executive Director, Ben Boakye, confirmed that the government has been notified of the legal action.

“I’ve made a point that processes—so unless you are saying that the legal processes that are laid out there in law are irrelevant, and therefore, because of the ownership of the resource, you can take any decision at any point. I don’t think that’s a good business relationship for any country to get into.

“They have invoked that. They’ve actually informed the government. That’s their right hand of the agreement. And that’s why we say that this is—you can negotiate,” he said.