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The Guardian
3 days ago
- Business
- The Guardian
Blue gold: how a Ghana mine's troubles hit workers and UK politicians – and could cost British taxpayers
In late 2020, amid the economic maelstrom unleashed by Covid-19, there were few better places to be than sitting on top of a goldmine. In Ghana, the west African country once called the Gold Coast by British colonisers, the Bogoso-Prestea mine was producing 4,000 ounces of the precious metal a month, valued at $6m (£4.5m). As gold prices reached record highs, London-based Blue International Holdings – a seasoned investor in African energy projects, pounced to buy the mine for $95m. Blue International promised 'attractive financial returns while having a positive impact on the communities and countries in which it operates, and the planet as a whole', according to its website. It enjoyed the backing of a trio of British political heavyweights, including two members of the House of Lords and a government minister. Yet, a few short years later, its future appears to have tarnished. And, as the Guardian reveals now, the venture appears to have resulted in collateral damage to everyone from Ghanaian mineworkers to a member of the British royal family, a billionaire backer of the GB News TV channel and, possibly, UK taxpayers. 'Blue Gold is a scam' read a placard, as protesters, backed by a brass band, voiced their discontent in February 2024. It was the latest in a string of demonstrations as miners and suppliers in the resource-rich Ashanti gold belt demanded to know why they were seeing no benefit from the precious metal buried beneath their feet. Four years earlier, when Blue International arrived, the future had seemed promising. The company boasted a track record of African investment stretching back to 2011, steered by its co-founders Andrew Cavaghan and Mark Green, professional investors with financial pedigree. As well as its new goldmine in southern Ghana, the company also owned a promising hydroelectric power project in Sierra Leone, a partnership with the government in Freetown. It came with a phalanx of prestige backers, drawn from the British political and business elite. Lord Dannatt, the former head of the British army, and Lord Triesman, a Foreign Office minister with responsibility for UK diplomatic relations in Africa, served on its advisory board. So, too, did Philip Green, who was rebuilding his reputation after the implosion of the government outsourcer Carillion, which collapsed during his time as chair in 2018. John Glen, a Treasury minister between 2018 and 2023, held shares in the company. The UK taxpayer was also significantly exposed. In early 2024, it emerged that the Treasury had lent Blue International £3.3m of taxpayers' money via the 'Future Fund' the previous year. Glen, the MP for Salisbury in Wiltshire, said he was not aware of the loan application when he served at the Treasury and there is no suggestion that he did. The Future Fund was designed, in the words of then chancellor Rishi Sunak, to support 'start-ups and innovative firms' survive the pandemic by extending them loans that converted into equity. In this case, the money supported a company engaged in extracting valuable minerals from African soil. In mining, all can appear calm on the surface, even as things fall apart below ground. By the time British taxpayers' money was pumped into Blue International, its Ghanaian venture was on the brink of a financial collapse whose tremors reached from rural west Africa to the City of London. Within two years of Blue International's takeover, operations at Bogoso-Prestea had been shut down several times, according to corporate filings and contemporary reports. Mineworkers blamed lack of investment from Blue, which owned and operated the mine via a local subsidiary, Future Global Resources (FGR). Lack of output choked off cashflow and increased costs, as equipment failed or required maintenance, according to one corporate filing. FGR failed to pay local suppliers, including the Ghanaian state electricity company, while mineworkers were left out of pocket, according to filings, fuelling local protests. 'It had devastating consequences,' said Abdul-Moomin Gbana, the general secretary of the Ghana Mineworkers' Union (GMWU). He said workers' salaries went unpaid for months, hitting the community hard. 'General conditions declined because they had no income. The communities virtually became ghost towns,' he said. 'It became obvious that if nothing was done, there was no way there could be a future for the mine.' Blue Gold declined to answer questions about the claims of unpaid wages, and directed questions to FGR. FGR did not respond to requests for comment. Eventually, in 2024, the Ghanaian government issued an ultimatum. Blue International must restore the mine to working production or hand back its lease, the right to own and operate the site. The company tried to issue bonds – a form of IOU – in Ghana to raise cash that could be invested in bringing the mine back to production but the fundraising effort stalled. The directors behind Blue International, Cavaghan and Green, restructured the debt-laden mine's ownership, moving it into a new entity called Blue Gold, also owned and incorporated by them, as part of a plan to raise new investment in the US. Despite this, in late 2024, the government of Ghana made good on its threat to seize back the Bogoso-Prestea lease. A legal challenge from the company failed earlier this year in Ghana's high court and the mine was handed over to a new operator. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Blue International's travails were not felt only by Ghanaian miners and the surrounding community. The British taxpayer's investment in the business now appeared to be under threat too. But it was blue-blooded lenders that suffered the more profound consequences. In 2021, at the start of its Ghanaian venture, Blue International had borrowed about $5m from Devonport Capital, a bespoke lender specialising in 'high-risk' jurisdictions, offering short-term loans at relatively high interest rates. Devonport, headquartered in Plymouth, was founded by Paul Bailey, a corporate lawyer who had carved out a niche advising investors in postwar Iraq. His partner was Thomas Kingston, who had also worked in Iraq conducting hostage negotiations for the UK Foreign Office in Baghdad, where he had witnessed first-hand the horrors of sectarian violence. In the UK, Kingston was better known for his marriage, in 2019, to Lady Gabriella Windsor, a second cousin of King Charles III. With this experienced and well-connected duo at the helm, Devonport thrived, recording pre-tax profit of £6m in 2023. But as Blue International's Ghanaian woes mounted, it began defaulting on the interest payments it owed to Devonport. Another of Devonport's important borrowers also defaulted at the same time, leaving the lender increasingly unable to repay its own creditors. Then, in February 2024, personal tragedy struck. Thomas Kingston died from a gunshot wound at his parents' home in the Cotswolds on 25 February. A coroner ruled that he had taken his own life. Torn apart by a combination of personal tragedy and the ongoing inability to recover its debts, Devonport fell into administration a year later. A report published in March by the administrator, RG Insolvency, lists creditors who had lent money to Devonport. Among them is Christopher Chandler, a New Zealand businessman and founder of Dubai-based investment company Legatum, which funds UK media channel GB News. Chandler declined to comment. Creditors also include HM Revenue and Customs, which is owed more than £788,000. RG Insolvency estimates that, of the £49m owed by Devonport, as little as £11.2m could be recovered. Much will depend on whether administrators can recoup about £13.5m owed by Blue International. Earlier this year, the team behind Blue International completed a $114.5m combination with a US 'blank cheque' investment firm called Perception Capital, and floating the combined entity on the US Nasdaq stock exchange under the Blue Gold name. What comes next is murky at best. Blue Gold's new website outlines ambitious plans to reopen the Bogoso-Prestea mine. But Ghana appears to be sticking by its decision to strip Blue of the lease. The dispute is now the subject of international arbitration, according to a stock market filing by Blue Gold, leaving the mine's future up in the air. In an annual report filed in the US, Blue Gold admits that the leases may never be returned, which would reduce the value of the company's assets from $368m to less than $45m. A section on the company website offers little further clarity, stating: 'Subject to resolving legal dispute with the government of Ghana, first gold pour is expected.' The Guardian approached the Foreign Office to ask if the UK government had intervened on Blue Gold's behalf with ministers in Accra. The department declined to comment. Dannatt and Triesman also declined to comment. Glen said he had not discussed the company's Ghanaian dispute with any UK government department, official or diplomat. On the ground in Ghana,local sources say little has changed, with operations still shut down under a new owner and mineworkers still left unpaid. The uncertainty means that, for everyone from local mineworkers to members of the British establishment, the dream of blue gold remains a mirage, tantalisingly out of reach. The Guardian approached Blue Gold for comment. The company referred the Guardian to its website and shareholder filings but did not address questions directly. Paul Bailey did not return requests for comment. RG Insolvency declined to comment.
The Guardian
4 days ago
- Business
- The Guardian
Tory peer apologises for helping set up ministerial meeting for firm he advises
A Conservative peer has apologised for breaking the House of Lords rules by helping to secure a meeting with a minister for a Canadian company he advises. Ian Duncan, a deputy speaker of the Lords, was found to have breached the rules by providing a parliamentary service for Terrestrial Energy when he facilitated an introduction between its chief executive and a new energy minister. His conduct had been reported to the House of Lords standards commissioner following the Guardian's months-long investigation examining the commercial interests of peers. As a result of the Lords debate series, four other peers are being investigated to establish whether they breached the house's code of conduct. A fifth peer, Iain McNicol, a former general secretary of the Labour party, was required to apologise in May for breaking the rules by writing to the Treasury to promote a cryptocurrency firm that was paying him. In a report published on Friday, the standards commissioner ruled that Lord Duncan of Springbank had broken the rules which forbid peers from seeking to profit from their membership of the upper chamber. The former junior climate minister has been an adviser to Terrestrial Energy since 2020. When he first joined, he was given share options, which allow him to buy shares in the company at a preferential rate if they become profitable. The Guardian revealed that, in 2023, Duncan forwarded a letter to Andrew Bowie, the nuclear minister at the time, from Simon Irish, the firm's chief executive who wanted a meeting with the minister at short notice. The peer signed off his email 'Lord D of S'. The chief executive of the company, which is developing a new type of nuclear reactor, secured the meeting with Bowie at which he lobbied for Terrestrial Energy to be given easier access to government funding. In his response to the watchdog, Duncan said Bowie was a 'friend of long standing' who had helped him get elected as a member of the European parliament in 2014 and had then worked in his Brussels office. Duncan argued: 'It was this personal relationship, and not my membership of the upper house, nor my government service, which led Mr Irish to ask whether there was a prospect (albeit limited) that a personal request might help land a meeting during his visit.' Margaret Obi, the Lords commissioner, decided that the rule prohibiting peers from providing 'parliamentary services in return for payment or other incentive or reward' was absolute. She added: 'It did not provide an exemption in cases where there was an existing personal relationship.' She ruled: 'Although Lord Duncan stated he was not paid specifically for facilitating this introduction, he received an allocation of share options as consideration for his work for Terrestrial Energy. 'I consider that this can reasonably be understood to have been an incentive or reward for the various tasks he undertook for the company.'
The Hindu
5 days ago
- Entertainment
- The Hindu
Psychic Star, Heart and Pyrite show out
Psychic Star, Heart and Pyrite showed out when the horses were exercised here on Friday (July 25) morning. Inner sand: 600m: Alexandria (Zervan) 40. Moved freely. Reine Etoile (Ritesh) 1200/600m 40. Easy. 800m: Superstar (Kirtish) 52, 600/39. Moved well. Chagall (Ajinkya) 53, 600/40. Moved fluently. Don Julio (Gore) 57, 600/43. Easy. Red Mist (Ramswarup) 51, 600/38. Worked freely. House Of Lords (Umesh) 57, 600/43. Urged. Zafferano (Nirmal) 53, 600/40. Pressed. Giant Gold (Antony), Lord Murphy (Aditya) 52, 600/39. They moved level freely. Johnny Mac (Shahrukh) 51, 600/38. Urged. Duessenerg (Ajinkya) 55, 600/41. Easy. Charrise (Kirtish) 54, 600/40. Moved freely. Foujita (Shahrukh) 52, 600/39. Pushed. Coin Empress (app) 53, 600/40. Pressed. Neutralist (A. Gaikwad) 52, 600/39. Worked well. Bugatti (Kirtish) 54, 600/40. Easy. Dentetsu (Ritesh) 53, 600/40. Moved freely. Exciting (Kirtish) 54, 600/40. Moved fluently. Brasilier (Pranil) 55, 600/40. Easy. Silver Braid (Mosin), Arlington Heights (Hamir) 53, 600/39. They moved level freely. Santissimo (Kirtish) 53, 600/40. Good. Evaldo (rb) 56, 600/42. Easy. 1000m: Pyrite (Mosin) 1-6, 800/52, 600/38. Responded well. Mansa Musa (Kirtish) 1-7, 800/52, 600/40. Worked well. Adeya (rb) 1-9, 800/54, 600/41. Urged. Zaccharias (Kirtish) 1-10, 600/41. Easy. Oh Kay (rb) 1-12, 600/43. Easy. Heart (Yash) 1-7, 800/52, 600/39. Pleased. Duke Of Tuscany (A. Prakash), Odysseus (Neeraj) 1-8, 800/52, 600/38. Former started three lengths behind and finished level. 1200m: Oliver (Kirtish) 1-26, 600/42. Easy. Solidarity (Kirtish) 1-25, 800/54, 600/40. Moved freely. Siege Courageous (Neeraj) 1-26, 600/43. Easy. Machiavellian (Nirmal), Gold Bart (A. Prakash) 1-24, 800/53, 600/40. Both moved neck and neck freely. Dream Alliance (Nirmal) 1-24, 600/41. Pushed in the last part. 1400m: Psychic Star (Kirtish) 1-37, 1200/1-22, 1000/1-8, 800/53, 600/39. Moved attractively.
Yahoo
6 days ago
- Health
- Yahoo
Disabled could be helped back into work with new right similar to maternity law
People with disabilities could be helped back into work with similar protections as those for women returning from maternity leave, a new report has suggested. A new right to reintegration for workers on sick leave could see firms prevented from dismissing someone unless it is shown the employer has made sufficient efforts at reintegrating the person, the Resolution Foundation think tank said. They said such a right would 'would clarify and strengthen existing legal protections' under the the Equality Act and 'provide a much stronger message to workers about what they are entitled to'. The report warned that the Government risks failing to meet its aim to raise the employment rate to 80% without a 'serious strategy to shift employer behaviour' and argues employers must be incentivised to reintegrate existing workers back into jobs. The report comes in the same week as the Universal Credit Bill cleared the House of Lords, aimed at rebalancing the benefit 'to remove work disincentives', according to a Government minister, while giving existing claimants 'the security and certainty they need'. Separately during the debate, Paralympic champion Baroness Tanni Grey-Thompson, who sits in the Lords, said disabled people have been portrayed as 'benefit scroungers and a drain on society' in the conversation on welfare reform. In its report, the Resolution Foundation said around 12% of disabled staff leave work each year – consistently 1.5-times the rate of non-disabled workers. It added that twice as many people move from work into inactivity due to ill health – around 304,000 each year – than those moving the other way (around 151,000). But the think tank said despite there being 'strong' legal obligations in place already on employers, they are 'simply not doing enough to retain existing workers', with fewer than half of disabled workers who request a reasonable adjustment – which can include a change to working arrangements or provision of equipment, services or support – having this granted in full. With 15% of disabled people reporting workplace discrimination relating to their disability in 2022, the report said this remains a 'pressing issue'. The think tank said: 'Boosting disability employment is not straightforward: it will involve improvements to the health system, benefits system and world of work. But action to incentivise and support employers is a vital piece of the puzzle.' Louise Murphy, senior economist at the Resolution Foundation, said: 'The Government should do more to incentivise firms to employ disabled people – especially those who have been out of work for long periods – but employers need to do more in return. 'A new right to reintegration could help disabled workers back into work in the same way that maternity rights transformed women's employment prospects a generation ago.' The foundation said the new right could be enforced through employment tribunals, but urged the Government to also consider 'more proactive enforcement mechanisms, whether via the Equalities and Human Rights Commission or connected to a new system of caseworkers that are expected to be covered in the forthcoming Mayfield Review'. Former John Lewis boss, Sir Charlie Mayfield, is undertaking a review to investigate how Government and businesses can work together to support ill and disabled people into work, with a report expected in autumn. The Government has been contacted for comment.
The Independent
6 days ago
- Health
- The Independent
Disabled could be helped back into work with new right similar to maternity law
People with disabilities could be helped back into work with similar protections as those for women returning from maternity leave, a new report has suggested. A new right to reintegration for workers on sick leave could see firms prevented from dismissing someone unless it is shown the employer has made sufficient efforts at reintegrating the person, the Resolution Foundation think tank said. They said such a right would 'would clarify and strengthen existing legal protections' under the the Equality Act and 'provide a much stronger message to workers about what they are entitled to'. The report warned that the Government risks failing to meet its aim to raise the employment rate to 80% without a 'serious strategy to shift employer behaviour' and argues employers must be incentivised to reintegrate existing workers back into jobs. The report comes in the same week as the Universal Credit Bill cleared the House of Lords, aimed at rebalancing the benefit 'to remove work disincentives', according to a Government minister, while giving existing claimants 'the security and certainty they need'. Separately during the debate, Paralympic champion Baroness Tanni Grey-Thompson, who sits in the Lords, said disabled people have been portrayed as 'benefit scroungers and a drain on society' in the conversation on welfare reform. In its report, the Resolution Foundation said around 12% of disabled staff leave work each year – consistently 1.5-times the rate of non-disabled workers. It added that twice as many people move from work into inactivity due to ill health – around 304,000 each year – than those moving the other way (around 151,000). But the think tank said despite there being 'strong' legal obligations in place already on employers, they are 'simply not doing enough to retain existing workers', with fewer than half of disabled workers who request a reasonable adjustment – which can include a change to working arrangements or provision of equipment, services or support – having this granted in full. With 15% of disabled people reporting workplace discrimination relating to their disability in 2022, the report said this remains a 'pressing issue'. The think tank said: 'Boosting disability employment is not straightforward: it will involve improvements to the health system, benefits system and world of work. But action to incentivise and support employers is a vital piece of the puzzle.' Louise Murphy, senior economist at the Resolution Foundation, said: 'The Government should do more to incentivise firms to employ disabled people – especially those who have been out of work for long periods – but employers need to do more in return. 'A new right to reintegration could help disabled workers back into work in the same way that maternity rights transformed women's employment prospects a generation ago.' The foundation said the new right could be enforced through employment tribunals, but urged the Government to also consider 'more proactive enforcement mechanisms, whether via the Equalities and Human Rights Commission or connected to a new system of caseworkers that are expected to be covered in the forthcoming Mayfield Review'. Former John Lewis boss, Sir Charlie Mayfield, is undertaking a review to investigate how Government and businesses can work together to support ill and disabled people into work, with a report expected in autumn. The Government has been contacted for comment.
