The Minerals Commission of Ghana has advised Northern Ashanti Mines Limited to resolve its dispute over the termination of its mining leases and prospecting licences through the courts, rather than making public statements. This advice comes after the company instituted legal action against the Minister responsible for Lands and Natural Resources, the Commission, and the Attorney-General. The dispute arose from the Commission's decision to terminate the company's mineral rights due to its failure to pay statutory fees and undertake meaningful mining operations for over two years.
According to the Minerals Commission, Northern Ashanti Mines Limited owes US$8.33 million in outstanding Annual Mineral Right fees for its mining leases covering 2010 to 2025, as well as US$49,928 in fees relating to prospecting licences between 2019 and 2025. The Commission cited these unpaid fees, along with the company's inactivity, as grounds for the termination of its mineral rights. The Commission's officials, accompanied by military personnel, entered the company's concession on October 22 to enforce the termination.
The Minerals Commission asserts that it followed the Minerals and Mining Act, 2006 (Act 703), the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176), and the terms of the agreements with Northern Ashanti Mines Limited. The company was given several opportunities to regularise its position but failed to do so. The Commission's Chief Executive Officer, Isaac Tandoh, stated that the company should allow the judicial process to determine the dispute, rather than seeking to influence public opinion.
Mr. Tandoh rejected the company's claim that it was seeking dialogue, arguing that its decision to sue the relevant authorities while making public statements amounted to pursuing the dispute in court and through the media simultaneously. He described this approach as improper and contemptuous of the judicial process. The termination of the company's mineral rights has caused them to revert to the state, but it does not extinguish the company's outstanding financial obligations.
The Minerals Commission has stated that it will continue to pursue the recovery of the outstanding fees owed by Northern Ashanti Mines Limited. The company had been operating in Ghana but had failed to meet its financial obligations and carry out meaningful mining activities. The Commission's actions are aimed at ensuring compliance with Ghana's mining laws and regulations.
The dispute between Northern Ashanti Mines Limited and the Minerals Commission highlights the challenges faced by mining companies in Ghana, particularly regarding compliance with regulatory requirements. The Commission's decision to terminate the company's mineral rights was based on its failure to meet its financial obligations and carry out meaningful mining activities. The case is expected to be resolved through the courts.
The outcome of this dispute may have implications for other mining companies operating in Ghana, particularly those that may be facing similar challenges in meeting their regulatory requirements. The Minerals Commission's actions demonstrate its commitment to enforcing Ghana's mining laws and regulations, and ensuring that mining companies operate responsibly and in compliance with the law.
Key points
- The Minerals Commission of Ghana has advised Northern Ashanti Mines Limited to pursue its legal challenge against the termination of its mining leases and prospecting licences in court rather than commenting publicly.
- Northern Ashanti Mines Limited owes US$8.33 million in outstanding Annual Mineral Right fees for its mining leases covering 2010 to 2025.
- The Commission will continue to pursue the recovery of the outstanding fees owed by Northern Ashanti Mines Limited.
