Minerals Commission Defends Northern Ashanti Mines Licence Termination

The Minerals Commission has defended its decision to terminate the mining lease and prospecting licences of Northern Ashanti Mines Limited, formerly Owere Mines, over the company’s failure to pay outstanding mineral right fees exceeding US$8.3 million.

In a statement issued on October 27, 2026, 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.

It expressed concern over what it described as an ongoing media campaign by the company to solicit public sympathy over the termination, insisting that the decision followed persistent breaches of Ghanaian law.

The Commission said Northern Ashanti Mines acquired a mining lease covering 595 cadastral blocks at Owere Mines in January 2010. Under Section 24 of Act 703 and the terms of its mining lease agreement, the company was required to pay annual mineral right fees.

It said that on April 14, 2025, it issued notices requiring the company to remedy the breaches under Section 68(2) of Act 703 and Regulation 200(3) of L.I. 2176.

The notices required the company to settle outstanding annual mineral right fees for its mining lease covering the period from 2020 to 2025, as well as fees for its prospecting licences covering 2019 to 2025.

According to the Commission, the outstanding fees amounted to US$8.33 million for the mining lease and US$49,928 for the prospecting licences. However, the company failed to comply with the notices within the stipulated period.

The Commission further said its investigations established that the company had not undertaken meaningful mining operations on the concession for more than two years, in contravention of Section 69(1) of Act 703.

Following the company’s failure to remedy the breaches, the Commission said it notified the Minister for Lands and Natural Resources on April 7, 2026, and requested that a termination notice be served on the company.

The Minister approved the issuance of the notice on April 24, 2026, after which the Commission proceeded to terminate the mineral rights on April 30, 2026.

“The Commission wishes to categorically state that it acted lawfully and followed due process at every stage. 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 stated.

It said all holders of mineral rights were required to comply with the applicable laws, regardless of whether they were indigenous companies or otherwise.

The Commission added that the termination meant the mineral rights had reverted to the State, but did not extinguish the company’s outstanding financial obligations incurred before the termination.

It further explained that the State had a responsibility to protect assets that had reverted to its ownership from being dissipated or taken over by encroachers and other illegal actors. It said the mining laws contained provisions governing the status of mining assets following the termination of mineral rights.

The Commission said mineral rights holders were required to pay statutory fees and undertake meaningful mining operations in accordance with the law.

“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,” it added.