The Minerals Commission of Ghana has defended its decision to revoke the mining leases of Northern Ashanti Mines Limited, formerly known as Owere Mines. According to the Commission, the company persistently defaulted on its statutory obligations, leading to the lawful termination of its mineral rights. The Commission's Chief Executive Officer, Isaac Andrews Tandoh, emphasized that a mineral right is not a gift or inheritance, but a privilege conferred by the State on certain terms that must be honoured.
The Commission outlined a sequence of defaults by Northern Ashanti Mines Limited, including the failure to pay Annual Mineral Right (AMR) fees annually. In January 2010, the company acquired a mining lease covering 595 cadastral blocks, but failed to pay the required fees, accumulating a debt of over $4 million by May 2020. Despite several notices and a proposed payment plan, the company continued to default on its obligations, with the debt rising to $8,330,000 by April 2025.
The Commission rejected allegations of bad faith and attacks on the Minister for Lands and Natural Resources, stating that due process was followed in terminating the company's mineral rights. On April 7, 2026, the Commission notified the Minister, requesting that a termination notice be served, which was subsequently approved and issued. The Commission emphasized that the company's claims of disputed figures are unfounded, citing clear records of the debt.
In response to the company's claim that the $8 million figure is incorrect, the Commission invited the public to verify the arithmetic, stating that the debt stood at approximately $6,000,000 as of December 29, 2022, and continued to accrue through 2025. The Commission also disclosed that the AMR actually paid by the company amounts to $300,000 in two tranches, not the $1,000,000 claimed by the company.
The Commission dismissed the company's call for dialogue, citing its decision to sue the Minister, the Commission, and the Attorney-General. The Commission stated that the company's actions are improper and contemptuous of the judicial process, and that it will pursue the company for all sums owed. Upon termination, the mineral rights reverted to the State as the lawful owner, without prejudice to all prior liabilities.
The Minerals Commission emphasized that it acted lawfully and followed due process at every stage, giving the company several opportunities to regularise its position, which it chose not to. The Commission concluded that no one is above the law in Ghana, and that sanctions will apply to those who flout the laws. The State has a responsibility to protect and secure the reverted assets from dissipation or encroachment.
The revocation of Northern Ashanti Mines Limited's mineral rights has significant implications for the mining sector in Ghana. The Commission's actions demonstrate its commitment to enforcing the laws and regulations governing the industry, and ensuring that companies operate in a responsible and sustainable manner. The State will continue to monitor the reverted assets to prevent dissipation or encroachment.
Key points
- The Minerals Commission's decision to revoke Northern Ashanti Mines Limited's mineral rights was based on the company's persistent defaults on its statutory obligations.
- The Commission followed due process in terminating the company's mineral rights, and rejected allegations of bad faith and attacks on the Minister for Lands and Natural Resources.
- The State has a responsibility to protect and secure the reverted assets from dissipation or encroachment, and will pursue the company for all sums owed.
