Blue Gold Fallout Prestea Bogoso Mine Turmoil Hits Ghana Workers and UK Investors

In 2020, as gold prices soared, the Bogoso-Prestea mine in Ghana seemed ideally positioned for prosperity. London-based Blue International Holdings moved swiftly to purchase the gold mine for $95 million, touting both financial and wider societal benefits. With influential British political figures such as Lord Dannatt and Lord Triesman on the advisory board and Treasury minister John Glen holding shares, expectations for the venture were high.

Yet within a few years, the picture changed dramatically. By 2024, the mine faced recurring shutdowns and growing financial distress. Mineworkers and suppliers complained of unpaid wages and mounting debts as Blue International, via its local subsidiary Future Global Resources, struggled to keep operations afloat. The Ghana Mineworkers’ Union described worsening conditions in the community, with many homes left without income and social decline becoming apparent.

Dissatisfaction spread beyond Ghana’s borders. British taxpayers found themselves exposed after the UK Treasury extended a £3.3 million loan to Blue International via the Future Fund during the pandemic. Companies such as Devonport Capital, a creditor to Blue International, also suffered substantial losses as Blue International defaulted on its obligations. Among Devonport’s lenders were high-profile British and international investors, ramping up the financial fallout when Devonport itself went into administration.

The Ghanaian government stepped in, demanding Blue International either reinvest to restore mine output or relinquish its lease. As attempts to raise new capital faltered and a subsequent ownership restructuring failed to halt the decline, officials followed through by reclaiming the mine late in 2024. Blue International moved its assets into a rebranded entity, Blue Gold, listed on Nasdaq after a US investment firm partnership, but this brought little relief.

Litigation looms as Blue Gold seeks international arbitration after the loss of the Bogoso-Prestea lease. The company’s latest filings openly warn investors that failure to regain its mining rights could see asset values plummet from $368 million to less than $45 million. On the ground, local workers and communities remain in limbo, with production halted even under the new operators and outstanding wages unpaid, illustrating the human cost of corporate and political missteps.

For British investors, Ghanaian workers and the broader mining sector, the Prestea-Bogoso saga stands as a cautionary tale: ambitious promises can quickly unravel when operational challenges, mismanagement and government intervention collide.