Minerals Commission defends revocation of Northern Ashanti Mines’ leases over US$8.3m Debt

MR. Isaak Andrews Tandoh

The Minerals Commission has defended its decision to revoke the mining leases of Northern Ashanti Mines Limited, formerly Owere Mines, citing the company’s alleged failure to pay more than US$8.3 million in annual mineral right fees and other outstanding obligations.

At a press briefing at the Commission’s head office in Accra on Thursday, October 29, 2026, the Commission said the decision to terminate the company’s mineral rights followed years of unpaid fees, repeated notices of default and unsuccessful attempts to secure payment.

The Commission rejected allegations by Northern Ashanti Mines that it had acted in bad faith, insisting that the Minister for Lands and Natural Resources and the Commission had acted within their respective legal mandates.

According to the Commission, the company acquired a mining lease covering 595 cadastral blocks in January 2010 but failed to meet its annual mineral right fee obligations under the Minerals and Mining Act, 2006 (Act 703).

It said a Notice to Remedy Breach was issued to Owere Mines on May 28, 2020, when the company’s outstanding debt had exceeded US$4 million.

Following a transitional takeover by BCM Investments, the company proposed settling the debt in four instalments. The Commission said it accepted the principle of the proposed payment arrangement in June 2020 but requested specific payment dates, which were not provided.

The Commission further alleged that the company failed to honour the proposed payment plan, prompting another notice on November 5, 2020.

It said subsequent notices were issued in October and December 2022 as the debt continued to increase.

By October 13, 2022, the outstanding amount had reached US$5,595,238.14, according to the Commission. By December 29 of the same year, the debt had risen to approximately US$6.188 million.

The Commission said a further notice was issued on April 14, 2025, covering outstanding fees on the mining leases and prospecting licences.

At the time, it put the debt relating to the mining leases at US$8.33 million, with an additional US$49,928 owed in respect of prospecting licences covering the period from 2019 to 2025.

The Commission maintained that the company again failed to settle the outstanding amounts.

Minister approved termination
The Commission said that on April 7, 2026, it formally notified the Minister for Lands and Natural Resources of the company’s continued non-payment and requested that a termination notice be issued.

According to the briefing, the Minister subsequently approved the issuance of the notice, after which the Commission proceeded to terminate the company’s mineral rights.

The Commission described the company’s failure to pay the annual mineral right fees as persistent and deliberate, arguing that the State had given it several opportunities to regularise its position.

Dispute over outstanding payments
Addressing the company’s challenge to the reported debt, the Commission insisted that the US$8.33 million figure was justified by the accumulation of unpaid fees between 2022 and 2025.

It said the outstanding amount stood at approximately US$6 million in December 2022 and continued to increase because the company remained in default.

The Commission also disputed the company’s reported payment figures, stating that its records showed that Northern Ashanti Mines had paid US$300,000 in annual mineral right fees in two instalments, rather than the US$1 million the company reportedly claimed to have paid.

It questioned why the company, which it said had claimed to invest US$200 million in the mine, had not settled the outstanding fees.

Commission rejects calls for dialogue
The Commission also questioned the company’s stated interest in dialogue, noting that Northern Ashanti Mines had initiated legal action against the Minister for Lands and Natural Resources, the Minerals Commission and the Attorney-General.

It argued that the company should allow the courts to determine the dispute rather than pursue the matter simultaneously through litigation and public commentary.

The Commission confirmed that the company had acknowledged receipt of the termination notice but had chosen to challenge the matter in court.

It said the termination of the mineral rights meant the rights had reverted to the State, without extinguishing the company’s liabilities incurred before the termination.

The Commission added that it reserved the right to pursue the company for all outstanding sums owed to the State.

It further stated that the State had a responsibility to protect the mining assets that had reverted to it against possible dissipation, encroachment or interference by illegal operators.

The Commission cited Section 70 of the Minerals and Mining Act, 2006 (Act 703), as providing for the status of mining assets following the termination of mineral rights.

Commission insists on enforcement of mining laws

Concluding the briefing, the Commission maintained that it had followed due process throughout the matter and had given Northern Ashanti Mines several opportunities to settle its obligations.

It stressed that mineral rights came with statutory responsibilities and that companies operating in the sector were required to comply with the laws governing the country’s mineral resources.

The Commission said it remained committed to enforcing the mining laws without fear or favour and would continue to pursue outstanding payments owed to the State.

The revocation has become the subject of a dispute between the mining company and the regulatory authorities, with the company challenging the Commission’s position and the Commission insisting that the termination was lawful.