Traditional authorities in Konongo and Juansa have expressed support for the revocation of the mining license of Northern Ashanti Mines Limited. The Minerals Commission terminated the company's mineral rights due to allegations of poor performance, environmental degradation, and neglect of responsibilities towards local communities. The Commission's decision was made after the company failed to pay Annual Mineral Right fees, which accumulated to US$8.33 million for mining leases and US$49,928 for prospecting licences by April 2025.
The Chief of Konongo, Nana Dr. Awuah Abedimsa II, endorsed the Commission's decision, stating that the Minerals Commission is the statutory body responsible for monitoring mining activities and has performance indicators to measure the performance of mining companies. He agreed with the action taken by the Commission and added that Northern Ashanti Mines lacked the resources to mine the deposits, leading to environmental degradation. The Chief wants the mine given to credible investors who can operate responsibly.
The Chief of Juansa, Nana Tweneboah Kodua Bempah, also supports the revocation, citing the destruction of water bodies in the area by illegal miners. He emphasized that the community relies heavily on farming and needs responsible mining practices to protect their river bodies. The Chiefs' endorsement of the government's decision reflects the concerns of local communities affected by the mining activities.
The lease was granted to Owere Mines in January 2010, covering 595 cadastral blocks. However, the company failed to pay Annual Mineral Right fees, leading to a Notice to Remedy Breach in May 2020. Despite a proposed payment plan, the company failed to meet its obligations, and the Commission issued successive notices between 2020 and 2025. The debt accumulated, and the Commission deemed the breach flagrant and deliberate, leading to the termination of the mineral rights.
The Minerals Commission rejects claims that the US$8 million figure is incorrect and disputes the company's claim of paying US$1 million. According to the Commission's records, only US$300,000 was paid. The Commission questioned what prevented the company from paying the owed amount, considering its claim of spending US$200,000,000 on the mine. The terminated rights revert to the State, which will secure the assets and pursue all outstanding liabilities.
The government has taken custody of the mine, and the military remains stationed at the facility. The Commission insists that it acted lawfully and with due process, emphasizing that a mineral right is a privilege conferred by the State on terms that must be honoured. The government is expected to announce next steps for the mine.
The revocation of the Northern Ashanti Mines license reflects the government's efforts to ensure responsible mining practices and protect the interests of local communities. The case highlights the need for mining companies to adhere to regulations and meet their obligations to the State and local communities.
Key points
- The Chiefs of Konongo and Juansa support the revocation of the Northern Ashanti Mines license due to poor performance and environmental degradation.
- The Minerals Commission terminated the company's mineral rights due to failure to pay Annual Mineral Right fees and neglect of responsibilities towards local communities.
- The government has taken custody of the mine, and the military remains stationed at the facility as next steps are awaited.
