Minerals Commission defends revocation of Narawa Mining leases over $909,127 debt

The Minerals Commission has defended its decision to revoke the mining leases of Narawa Company Limited over an outstanding debt of US$909,127.79 in annual mineral right fees, insisting that the termination followed due legal process.

In a press statement dated October 20, 2026, the Commission rejected allegations by Narawa that its mining leases covering the Nsutam and Osiem concessions were wrongfully or unlawfully terminated and that its operations were handed over to an individual.

The Commission described the allegations as false, arguing that the company had failed to meet its financial obligations under Section 24 of the Minerals and Mining Act, 2006 (Act 703), and Clause 27 of its mining lease agreement with the Government of Ghana.

According to the Commission, it issued Notices to Remedy Breach to Narawa in accordance with Section 68(2) of Act 703 and Regulation 200(3) of the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176), after the company defaulted on its annual mineral right payments.

However, Narawa allegedly failed to settle the outstanding amount within the stipulated period, prompting the Commission to initiate the lease termination process.

The Commission said it recommended the termination to the Minister for Lands and Natural Resources in a letter dated July 29, 2025.

The Minister subsequently approved the recommendation on August 19, 2025, while a formal Notice of Termination was issued to the company on September 3, 2025.

Following the termination, the Commission maintained that Narawa ceased to hold any valid mineral rights or interests in the Nsutam and Osiem concession areas, with the rights reverting to the State.

It further warned that any mining activities undertaken by the company on the concessions after the termination date would constitute illegal mining.

The Commission also denied authorising or permitting any invasion of the concession areas, explaining that the State had since granted new mineral rights over the affected areas to two separate entities.

According to the statement, the new rights holders are operating within the framework of applicable laws and regulatory requirements.

The dispute highlights the importance of compliance with statutory financial obligations in Ghana's mining sector, where mineral right holders are required to meet the conditions attached to their licences and lease agreements.

The Minerals Commission reaffirmed its commitment to the transparent and lawful management of the country's mineral resources, adding that it would not be influenced by attempts to misrepresent the facts or bypass established legal procedures.

Story by: Joshua Kwabena Smith