Bauxite Brouhaha: Exton Cubic threatens to sue government

Exton Cubic Group Limited has threatened to sue government over the attempt to block its exploration of the Nyinahini bauxite concession.

According to the group, the confiscation of their mining equipment by the Ashanti regional minister is piling heavy debts on its books on daily basis.

In a statement addressed to the attorney general, lawyers of the mining firm said they have been instructed by their client to serve the state notice of a possible legal suit over the matter.

“In terms of our client’s contractual obligations to Engineers and Planners the cost per day for total equipment, consisting of 8 tracks, 1 caterpillar generator and 2 container offices in police custody is Sixty One Thousand Six Hundred and Fifteen Cedis (GHS 61,615.00) with the effect that from the 20. day of August, 2017 when the trucks were seized by the police, to 25th of August 2017 which is the date of this letter, our client has already incurred financial obligations to Engineers and Planners in the sum of Three Hundred and Eight Thousand Seventy Four Cedis (GHS 308,074.00) which continues to accumulate as the trucks remain in the police custody.

“In the light of the foregoing, our client has instructed us to serve you notice of its intention to institute legal proceeding against the State as a result of the wrongful interference by State officials with our client’s right to prospect on its concession and also a breach of its right to administrative justice, the latter cause of action resulting from the seizure and-detention of trucks without, due process as well as recover all sums of money our client must pay to Engineers an Planners by reason of the actions of die State officials responsible for the seizure and detention of the trucks,” portions of the statement said.

The company also maintains that at every point in time, they have had the license to embark on their exploratory work.

“Our client’s instructions to us are that at all times material to the date when ABM LEGAL notwithstanding that his attention has been drawn to the fact that at all times material to the date when he ordered the seizure and detention of the trucks our client had an unquestionable right to enter its concession site and carry on prospecting activities there in the legitimate pursuit of its business.

“We have been instructed by our client that the seizure and detention of the said trucks has not only adversely affected our client’s business operations but has occasioned and continues to cause our client, financial loss the reason being that our client is contractually obliged to pay Engineers and Planners Limited for each day that the trucks ought to have been profitably engaged pursuant to the agreement between our client and Engineers and Planners but which m a result of the intervention of the police remain idle”.