Minerals Commission defends termination of Northern Ashanti Mines lease over US$8.33million unpaid fees

Northern Ashanti Mines Limited, formerly known as Owere Mines, owed the Minerals Commission approximately US$8.33 million in outstanding annual mineral rent fees before its mining lease was terminated, the Commission has disclosed.

The amount represented unpaid fees covering the period from 2010 to 2025, according to a statement issued by the Minerals Commission on Tuesday, October 27, 2026.

The Commission said the company also owed an additional US$49,928 in respect of prospecting licences covering the period from 2019 to 2025.

It said the outstanding payments formed part of several breaches that ultimately led to the termination of the company's mining lease and prospecting licences.

According to the Commission, Northern Ashanti Mines acquired a mining lease in January 2010 covering 595 cadastral blocks in respect of the Owere Mines.

Under Section 24 of the Minerals and Mining Act, 2006 (Act 703), and the terms of its mining lease, the company was required to pay annual mineral rent fees to the Minerals Commission.

The Commission said it issued a notice to the company on April 14, 2025, requiring it to settle the outstanding mineral rent and prospecting licence fees.

However, it said Northern Ashanti Mines failed to comply with the notice within the stipulated period.

The Commission also said the company had not undertaken any meaningful mining operations on the concession for more than two years, which it described as a breach of Section 69(1) of Act 703.

The outstanding debts and failure to remedy the breaches eventually led the Commission to initiate the process for termination of the company's mineral rights.

The Commission said it notified the Minister for Lands and Natural Resources on April 7, 2026, requesting approval to serve a notice of termination on the company.

The Minister approved the request on April 24, 2026, after which the Commission terminated the lease on April 30, 2026.

The Minerals Commission said it had acted strictly in accordance with the law and had given Northern Ashanti Mines an opportunity to regularise its position before taking the decision.

It stressed that holders of mineral rights were required to comply with their statutory obligations, including payment of applicable fees and undertaking meaningful mining operations.

The Commission further clarified that termination of the company's mineral rights did not extinguish its existing financial obligations.

It said the mineral rights had reverted to the State following the termination, but the company remained liable for debts and other obligations incurred before the termination.

“The Commission reserves the right and shall pursue the company to pay all the sums it owes to the State,” the statement said.

The Commission also said the State had a responsibility to protect and secure assets that had reverted to it following the termination of the mineral rights.

The development comes amid a dispute between Northern Ashanti Mines and the State over the termination of the company's mining rights.

The company's director and shareholder, Fredrick Okine, has alleged that processes to award the disputed concession to another party had begun before the company received its termination letter.

He has also raised concerns about visits to the site by individuals he described as Chinese nationals under the supervision of the regional Minerals Commission office.

The Minerals Commission, however, maintained that its decision was lawful and said the company had already instituted legal proceedings against the State to challenge the termination.

It accused the company of seeking public sympathy over a matter that is before the courts and said it would remain committed to enforcing Ghana's mining laws without fear or favour.