A troubled mining project in Ghana, once hailed as a model of sustainable investment, is now drawing scrutiny across continents after financial collapse left hundreds of local workers unpaid and placed British taxpayers at risk of multimillion-pound losses. The so-called “blue gold” operation, centred on lithium extraction, has become a cautionary tale in the intersection of green ambitions, development finance and political oversight.
Lithium dreams turned sour
The Ewoyaa lithium mine in Ghana’s Central Region was backed by high expectations. Marketed as a key supply source for electric vehicle batteries and green energy storage, the project received early endorsement from UK and Ghanaian officials. Lithium—often dubbed “blue gold” for its strategic value—was at the heart of global clean tech ambitions, and Ewoyaa was seen as a flagship project in Africa’s mineral transition.
British Development Finance Institution (DFI) funding and private equity flowed into the venture, with ministers publicly praising it as a win-win for the UK’s green industrial strategy and African development. But earlier this year, operations stalled amid allegations of financial mismanagement, permit irregularities and deteriorating investor confidence. Ghanaian regulators suspended key licenses, while staff reported months without wages.
Workers abandoned amid political fallout
For local employees and contractors, the fallout has been immediate. Over 300 workers say they have been left unpaid since May, with many struggling to cover basic living costs. Labour unions in Ghana have accused both the mining firm and government officials of failing to enforce wage protections or communicate transparently about the future of the site.
In the UK, the story has also taken on a political dimension. Several senior MPs had promoted the project in Parliament and at investment summits, citing it as proof of the UK’s commitment to ethical overseas development. As questions mount over how public funds were allocated and monitored, opposition figures have called for a formal inquiry into the UK’s involvement and exposure.
Taxpayer risk and opaque funding chains
Central to the controversy is the role of British taxpayer-backed entities in financing the mine. The UK government’s development finance arm is believed to have contributed over £60 million to the project, through a mix of direct investment and guarantees. With operations now frozen and revenues unlikely to materialise, analysts warn that UK taxpayers may be forced to absorb steep losses.
Critics argue that the deal lacked sufficient transparency and oversight, particularly around how risk assessments were conducted and how performance was tracked. The complex web of offshore holding companies, subcontractors and political connections has made it difficult for Parliament and civil society to determine accountability.
Broader lessons for green investment abroad
The Ewoyaa case has prompted wider concerns about the governance of overseas green mineral projects. As global demand for lithium, cobalt and rare earths surges, countries and companies are racing to secure supply chains—often in jurisdictions with weaker regulatory frameworks. The risk, experts warn, is that well-intentioned investments end up undermining local communities and creating political liabilities.
In the UK, the scandal may accelerate calls for stricter DFI oversight, more robust due diligence, and clearer lines of responsibility when taxpayer funds are deployed abroad. For the workers in Ghana still waiting for their pay, and for the British public now footing part of the bill, the promise of “blue gold” has turned into a cautionary tale.
REFH – Newshub, 27 July 2025
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