Minerals Commission defends termination of Northern Ashanti Mines’ leases over $8.38m debt
Story by Eugene Nyarko Jnr. l Accra l Tuesday, October 27, 2026 —
The Minerals Commission has defended the termination of the mining leases and prospecting licences of Northern Ashanti Mines Limited, formerly Owere Mines, citing outstanding statutory fees exceeding US$8.38 million and alleged failure to undertake meaningful mining operations for more than two years.
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 of the company’s agreements with the State.
In a press statement, the Commission said Northern Ashanti Mines had persistently failed to meet its statutory obligations despite being given an opportunity to remedy the breaches.
The company acquired a mining lease covering 595 cadastral blocks in January 2010 for the Owere Mines concession. Under Section 24 of Act 703 and the terms of its mining lease agreement, it was required to pay annual mineral right fees to the Commission.
However, the Commission said the company had accumulated outstanding fees covering the period from 2010 to 2025 for its mining leases and from 2019 to 2025 for its prospecting licences.
According to the Commission, the outstanding amount for the mining leases was US$8.33 million, while fees relating to the prospecting licences totalled US$49,928.
The Commission said it issued notices to remedy the breaches on April 14, 2025, under Section 68(2) of Act 703 and Regulation 200(3) of L.I. 2176, but the company failed to settle the outstanding amounts within the stipulated period.
It further alleged that Northern Ashanti Mines had not undertaken meaningful mining operations on the concession for more than two years, contrary to Section 69(1) of Act 703.
Termination process
The Commission said it initiated the formal termination process after the company failed to remedy the identified breaches.
It explained that on April 7, 2026, it notified the Minister for Lands and Natural Resources 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 with the termination on April 30, 2026.
The Commission maintained that it had followed due process throughout the exercise and given the company sufficient opportunity to regularise its position.
“Mineral rights are not an inheritance,” the Commission said, stressing that all holders of mineral rights, irrespective of their ownership or origin, must comply with statutory requirements, including the payment of fees and the undertaking of meaningful mining operations.
State to pursue outstanding debt
The Commission said the terminated mineral rights had reverted to the State, which it described as the lawful owner, without extinguishing the company’s outstanding liabilities.
It indicated that it would pursue Northern Ashanti Mines to recover the outstanding amounts owed to the State.
The Commission also said the State had a responsibility to protect assets associated with the concession against dissipation, encroachment and activities by illegal operators.
It pointed to Section 70 of Act 703 as providing for the status of mining assets following the termination of mineral rights.
Legal action and public statements
The Commission disclosed that Northern Ashanti Mines had instituted legal proceedings against the State to challenge the termination and the Government’s subsequent exercise of its rights.
It said the company had acknowledged receipt of the termination notice before initiating the legal challenge.
The Commission criticised what it described as the company’s simultaneous resort to the media to advance its position while the matter was before a court.
It argued that the company’s public campaign risked undermining the judicial process and accused it of promoting narratives that did not reflect the circumstances surrounding the termination.
The Commission, however, did not indicate in the statement when the court proceedings would be heard or provide further details about the reliefs being sought by the company.
It reiterated its commitment to enforcing Ghana’s mining laws without fear or favour, insisting that the termination was based on the company’s alleged statutory breaches rather than any arbitrary exercise of power.
