The High Court in Accra (Commercial Division) has granted leave for African Champion Industries (ACI) to enforce a judgment debt totaling $17,064,201 and GH¢6,907,225.08 against Adamus Resources Limited and BCM International Limited.
The decision stems from an arbitration involving the three parties. On March 14, 2023, the arbitral tribunal ruled in favour of ACI regarding royalties and contractual obligations connected to the Teleku Bokazo mine in the Nzema enclave.
The court ordered Adamus to pay ACI royalty arrears of $4,469,276 covering January 2013 to January 2017, plus accrued interest.
From January 2018 onwards, ACI is entitled to three per cent of net profit or one per cent of sales turnover—whichever is higher—together with accrued interest at prevailing commercial rates.
The tribunal further directed Adamus to pay $2,458,101.80 as damages for breach of contract.
It also awarded ACI costs and legal expenses, including tribunal fees of GH¢612,158.98, administrative expenses of GH¢20,000, transcript costs of GH¢2,034, legal costs of GH¢3,307,867, three per cent of the award ($134,078.28) and tribunal legal expenses of GH¢21,461.14.
The dispute dates back to 1996, when Super Paper Products Company (SPPC), now ACI, entered into a joint venture agreement with SEMAFO (later Adamus) covering royalties from the Teleku Bokazo mine.
A 2008 agreement reaffirmed Adamus’s royalty obligations to ACI.
Adamus began royalty remittances in December 2012, with the last payment made in January 2018 for the December 2017 obligation. BCM acquired Adamus in late 2017 but did not notify ACI or seek its consent.
Following a February 2018 meeting between ACI’s Executive Chairman, Elkin Pianim, and BCM’s owners, Paul and Angela List, royalty payments were halted.
Adamus’s representative, Kenneth Amponsah, later claimed that the company lacked documentation and alleged a disputed amount of $1.1 million. ACI, however, insists no formal dispute had been communicated, and Pianim said he was assured by Paul List that payments would continue.
Despite these assurances, royalties were not resumed. In October 2018, the High Court injuncted BCM/Adamus from paying or receiving monies related to the mine, but the order was not complied with.
In August 2020, the Ghana Arbitration Centre further restrained BCM/Adamus from exporting gold, directing that all bullion be delivered to the Bank of Ghana pending resolution of the matter, an order which was also ignored.
With the latest ruling, the High Court has cleared the way for ACI to enforce the arbitral tribunal’s award, potentially ending years of dispute over royalties and contractual breaches.
BY MALIK SULLEMANA
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