The Minerals Commission has mounted a robust public defence of its decision to terminate the mining leases and prospecting licences of Northern Ashanti Mines Limited, disclosing that the company owes the State more than US$8.38 million in unpaid statutory fees accumulated over a 15-year period and had ceased meaningful mining operations for over two years.
The Commission’s statement, issued on Tuesday, October 27, 2026, comes days after a dramatic security operation at the company’s Konongo concession in the Ashanti Region, where Minerals Commission officials accompanied by military personnel moved to enforce the termination. The operation has since sparked a legal battle and a public relations war, with the company accusing the government of a “Rambo-style” takeover while the regulator insists it followed the law to the letter.
The Debt and the Breaches
According to the Commission, Northern Ashanti Mines—formerly known as Owere Mines—acquired a mining lease covering 595 cadastral blocks in January 2010. Under Section 24 of the Minerals and Mining Act, 2006 (Act 703), the company was obligated to pay Annual Mineral Right (AMR) fees to the Commission on an annual basis .
The Commission states that between 2010 and 2025, the company failed to pay these fees, accumulating an outstanding debt of US49,928 was owed in respect of prospecting licences covering the period from 2019 to 2025, bringing the total to US$8.38 million .
Pursuant to Section 68(2) of Act 703 and Regulation 200(3) of the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176), the Commission issued Notices to Remedy Breach on April 14, 2025, giving the company a stipulated period to settle the outstanding amounts and address the violations . The company, according to the Commission, failed to comply.
Beyond the financial breaches, the Commission said it established that Northern Ashanti Mines had not undertaken any meaningful mining operations on the concession for a period exceeding two years, in direct contravention of Section 69(1) of Act 703 .
The Termination Process
Following the company’s failure to remedy the breaches, the Commission notified the Minister for Lands and Natural Resources on April 7, 2026, seeking approval to issue a termination notice. The Minister, Emmanuel Armah-Kofi Buah, approved the request on April 24, 2026. The Commission proceeded to terminate the mineral rights on April 30, 2026 .
“The Minerals Commission wishes to categorically state that it acted lawfully and followed due process at every stage,” the statement said. “The Company was given every opportunity to regularise its position and yet chose not to. The law is the law. Mineral rights are not an inheritance” .
The Commission emphasised that the obligations apply equally to all holders, regardless of whether they are indigenous companies. “Once granted, a holder must abide by the rules, whether they are an indigenous company or not, and this includes the payment of statutory fees and the undertaking of meaningful mining operations” .
Rights Reverted, Debts Remain
The Commission clarified that while the terminated mineral rights have reverted to the State, the company’s outstanding liabilities were not extinguished by the termination. “The Commission reserves the right and shall pursue the company to pay all the sums it owes to the State,” the statement said .
It further justified the security operation at the concession, stating that the State has a responsibility to protect assets that have reverted to it from being “dissipated or overrun by any encroachers or other illegal actors.” The Commission referenced Section 70 of Act 703, which provides for the status of mining assets upon termination of mineral rights .
Legal Battle and Public Spat
The Commission’s statement comes amid an ongoing legal challenge by Northern Ashanti Mines, which has filed an application for judicial review and an injunction at the High Court in Accra, seeking to quash the termination and restrain the State from taking over the concession .
The company argues that it was neither notified of the alleged breaches nor given an opportunity to remedy them before the lease was terminated, contrary to the requirements of Act 703. It claims to have invested between US200 million in exploration and the construction of a processing plant at the historic Konongo Gold Mine, which it says had been inactive for at least 15 years before it took over .
The company’s director, Fredrick Okine, told Citi Breakfast Show on Tuesday that the investment was financed through local banks and that approximately 400 workers, including permanent employees and contractors, could be affected by the takeover. He said the company had written to the Minerals Commission and the Minister seeking clarification on the termination letter issued in April but received no response before the October 22 operation .
The Commission, however, accused the company of resorting to the “court of public opinion” while the matter is sub judice. “Having done so, it is improper and contemptuous of the judicial process for the Company to simultaneously resort to the court of public opinion, peddling false narratives and soliciting sympathy for a matter it flagrantly violated,” the statement said .
“The Minerals Commission remains resolute in its resolve to uphold the laws without fear or favour and will not be distracted by media theatrics” .
Broader Implications
The dispute has drawn attention to the enforcement of regulatory compliance in Ghana’s mining sector, particularly regarding indigenous companies and the balance between protecting private investment and ensuring that mineral rights holders fulfil their statutory obligations.
Northern Ashanti Mines, a subsidiary of Nguvu Mining Limited, holds a 13-year mining lease ratified by Parliament, covering approximately 125 square kilometres and running until February 1, 2036 . The company has alleged that plans are afoot to transfer the concession to a consortium of Chinese investors, a claim the Commission has not directly addressed .
The High Court is yet to rule on the company’s application for judicial review or the injunction. The Minerals Commission has indicated it will vigorously defend its decision in court while pursuing the recovery of the outstanding debts owed to the State.
