Minerals Commission defends termination of Northern Ashanti Mines’ licences over unpaid fees

The Minerals Commission has defended the termination of the mining leases and prospecting licences held by Northern Ashanti Mines Limited, formerly known as Owere Mines, citing years of unpaid statutory fees and the company’s failure to undertake meaningful mining operations.

In a statement, the Commission said the termination was carried out in accordance with the Minerals and Mining Act, 2006 (Act 703), the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176), and the terms governing the company’s mineral rights.

According to the Commission, Northern Ashanti Mines acquired a mining lease covering 595 cadastral blocks in January 2010 and was required to pay Annual Mineral Right (AMR) fees to the regulator every year.

However, the Commission said the company accumulated outstanding fees amounting to US$8.33 million for its mining leases covering the period from 2010 to 2025, as well as US$49,928 for prospecting licences covering 2019 to 2025.

The regulator stated that it issued Notices to Remedy Breach to the company on April 14, 2025, under Section 68(2) of Act 703 and Regulation 200(3) of L.I. 2176, directing it to settle the outstanding amounts within the stipulated period.

The Commission maintained that the company failed to comply with the notices and also breached Section 69(1) of Act 703 by failing to undertake meaningful mining operations on the concession for more than two years.

Following the alleged breaches, the Commission said it notified the Minister for Lands and Natural Resources on April 7, 2026, requesting the issuance of a termination notice.

The Minister approved the request on April 24, 2026, and the Commission proceeded to terminate the mineral rights on April 30, 2026.

The Commission insisted that it followed due process and gave the company sufficient opportunity to regularise its position before taking action.

“The law is the law. Mineral rights are not an inheritance,” the statement stressed, adding that all holders of mineral rights, regardless of whether they are indigenous or foreign-owned, are required to comply with statutory obligations, including the payment of fees and the conduct of meaningful mining operations.

The Commission further stated that the terminated mineral rights had reverted to the State, while the company remained liable for all outstanding obligations incurred before the termination.

It said the State would pursue the recovery of the outstanding sums and take the necessary steps to protect the mining assets from dissipation, encroachment or interference by unauthorised persons.

The Commission also referred to Section 70 of Act 703, which it said provides for the status of mining assets following the termination of mineral rights.

The regulator expressed concern over what it described as a media campaign by Northern Ashanti Mines to solicit public sympathy over the termination.

According to the statement, the company has instituted legal proceedings against the State to challenge the decision, having acknowledged receipt of the termination notice.

The Commission argued that the company’s resort to public commentary while the matter is before the courts was inappropriate, accusing it of promoting what it described as false narratives about the dispute.

It reaffirmed its commitment to enforcing Ghana’s mining laws without fear or favour and said it would not be distracted by what it characterised as media theatrics.

The statement was issued by the Communications and Corporate Affairs Directorate of the Minerals Commission.

Story by: Joshua Kwabena Smith and Priscilla Dodoo