The Minerals Commission has vowed to pursue Northern Ashanti Mines Limited for US$8.38 million in unpaid statutory fees, insisting that the termination of the company’s mineral rights does not extinguish its financial obligations to the state.
Speaking at a press conference in Accra on Thursday, October 29, the Commission’s Chief Executive Officer, Isaac Tandoh, said the company owes US49,928 for prospecting licences from 2019 to 2025 . The total liability stands at approximately US$8.38 million.
“The Minerals Commission reserves the right and shall pursue the company to pay the full sums it owes to the state,” Mr Tandoh said. “Once the annual mineral rights were terminated, they reverted to the state as a lawful owner without prejudice to all the liabilities assumed by the company prior to termination, including the substantial indebtedness” .
A Decade of Default
The dispute has deep roots. The concession, formerly operated by Owere Mines, was acquired by Northern Ashanti Mines—a subsidiary of Nguvu Mining Limited—in 2020. According to the Commission, the company’s payment troubles predate the takeover.
The Commission issued a Notice to Remedy Breach in May 2020, when outstanding debts had already exceeded US5.59 million, and by December of that year, it stood at approximately US$6.19 million .
A further notice was served in April 2025, covering outstanding fees on both mining leases and prospecting licences. When the company again failed to comply, the Commission notified the Minister for Lands and Natural Resources on April 7, 2026, seeking approval to terminate the mineral rights. The Minister approved the request on April 24, and the leases were terminated on April 30, 2026 .
The Commission also disclosed that its records show the company paid only US1 million the company claims to have paid .
Military Operation and Legal Battle
Tensions escalated on October 22, when officers of the Minerals Commission, accompanied by military personnel, entered the company’s Konongo concession to enforce the termination. Workers were ordered to vacate the site, offices and residential accommodation .
Northern Ashanti Mines has since filed a judicial review application 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 never served with a notice of breach or given an opportunity to remedy any alleged violations, as required under Section 68 of the Minerals and Mining Act, 2006 (Act 703) .
The company claims it has invested over US2.4 million, with the remainder inherited from the previous operator, Owere Mines .
Commission Rejects Media Campaign
Mr Tandoh rejected the company’s public narrative, accusing it of litigating in both the courts and the media simultaneously. “A company that sues the Honourable Minister, the Minerals Commission and the Attorney General is not a company that is seeking dialogue,” he said. “It is a company seeking to litigate in court and in the media simultaneously. This is improper, and it is contemptuous of the judicial process” .
The Commission maintains that the termination was carried out lawfully under Act 703, the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176), and the terms of the mining lease agreement. It also cited the company’s failure to undertake meaningful mining operations for more than two years as an additional ground for termination .
Calls for Negotiation
The dispute has drawn commentary from former Commission officials. Obiri Yeboah Twumasi, a former Chief Inspector of Mines, urged both parties to negotiate a payment plan rather than escalate the conflict. He noted that a company still constructing its processing plant and investing in equipment may lack sufficient cash flow to meet its obligations, and suggested the Commission should give the company the statutory 120-day remediation periods before pursuing termination .
“What we need to do is for two sides to sit down and negotiate whatever differences that they have, so that at the end of the day, the benefit will inure to the whole country,” Mr Twumasi said .
The High Court has yet to rule on the company’s injunction application or the substantive judicial review. Meanwhile, the Minerals Commission says it will continue to enforce the country’s mining laws and ensure that all holders of mineral rights meet their statutory obligations to the state.
