$8.38M Debt: Chiefs Back Mine Lease Revocation

Traditional rulers in the Asante Akyem enclave of the Ashanti Region have officially and publicly supported the Minerals Commission’s decision to cancel the mining lease of Northern Ashanti Mines Limited, saying no company is above the law.

The chiefs, led by the Mennamhene, Nana Tweneboah Kodua Bempah, and the Chief of Konongo, Nana Dr Awuah Abedimsa II, said the company’s failure to pay statutory fees and its inability to work the concession left the Commission with no choice but to act.

The Minerals Commission explained it revoked the lease after the company, formerly known as Owere Mines, failed to settle outstanding Annual Mineral Right fees amounting to US$8.33 million covering the period from 2010 to 2025. It said the company also owed US$49,928 in fees for prospecting licences from 2019 to 2025.

The Commission said it issued notices to the company on April 14, 2025, asking it to remedy the breaches and pay up, but the company did not comply. The Commission then sought the approval of the Minister for Lands and Natural Resources, which was granted on April 24, 2026, and the mineral rights were terminated on April 30, 2026.

The Commission further found that Northern Ashanti Mines had not undertaken any meaningful mining operations on the concession for more than two years, a situation it said breached Section 69(1) of the Minerals and Mining Act, 2006 (Act 703).

Chiefs Support

Speaking on behalf of the Juansamanhene, Nana Kwaku Dankwah Opamago Kodie II, the Mennamhene said holding a mining concession does not place any company above the law. He criticised companies that paint themselves as victims after breaching mining regulations, describing such conduct as unhelpful to the push for accountability.

The Konongo Chief, Nana Dr Awuah Abedimsa II, questioned the company’s financial capacity, saying it had not demonstrated the strength to run effective gold mining operations.

Nana Dr Awuah Abedimsa II said the Minerals Commission’s decision was justified, especially because the company could not show it had the capacity to develop and run the concession effectively.

He urged the Minerals Commission to ensure that any new investor has the money, technical skills and commitment to develop the concession and bring real benefits to the communities.

The chiefs also made it clear that the incoming operator must prioritise community development, respect Ghana’s mining laws and pay statutory revenues on time. They said the traditional authorities are ready to sit with the new company to discuss what the mining area needs and how mining can support local development.

Court Case

Northern Ashanti Mines, a subsidiary of Nguvu Mining, has not taken the revocation lightly. The company has filed a suit at the High Court against the Minerals Commission, the Minister for Lands and Natural Resources, and the Attorney-General, seeking to have the termination quashed and its mining rights restored.

The company claims it was not given notice of the breaches and was not allowed to respond before the lease was cancelled. It also says it has spent about US$110 million on equipment, infrastructure and a partly completed processing plant at the Konongo Gold Mine.

The Minerals Commission, however, insists it followed the law. Its CEO, Mr. Isaac Tandoh, told a press conference in Accra on October 29, 2026, that the Commission’s records show the company paid only US$300,000 in two instalments towards its annual mineral right fees, not the US$1 million the company claims.

Mr. Tandoh said the company had acknowledged receiving the termination notice but chose to go to court, and he urged it to let the courts decide the matter. He added that the mineral rights had reverted to the State and that the Commission would pursue the outstanding debts and protect the mining assets from encroachment and illegal activities.

The chiefs say the focus must now be on getting a serious investor who can turn the area’s gold resources into jobs, development and better lives for the people. They stressed that the selection of a new operator must be transparent and based on due diligence, not just a transfer of paperwork.

For now, the mining rights are back in the hands of the State, and the battle over the lease has moved from the concession to the courtroom.