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Northern Ashanti Mines contests Minerals Commission takeover of Konongo mine

Northern Ashanti Mines Limited (NAML) has formally contested the Minerals Commission’s takeover of its Konongo mine premises, describing the regulator's claims of an US$8.38 million debt as false and the revocation of its lease as a move made in bad faith. According to NAML, a recent audit indicates its actual outstanding statutory debt is approximately US$2.4 million. The company further alleged that the Commission failed to provide any prior notice of statutory breaches before moving to seize the site, despite NAML having invested over US$100 million into the project since 2019. The dispute has sparked significant concerns regarding the treatment of Ghanaian-owned mining companies. Kofi Bentil, Vice President of IMANI Africa, publicly alleged that the takeover might be part of a broader trend where politically connected individuals use regulatory leverage to seize control of local mining assets. Speaking on the matter, Bentil emphasized that such actions contradict the government’s stated commitment to indigenization and could deter future investment by creating a sense of regulatory instability. He called for the Minister of Lands and Natural Resources to provide clarity on the legal basis for the Commission's decision. Industry experts and transparency advocates are also urging the Minerals Commission to pursue a more collaborative approach. Dr. Steve Manteaw, Co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), argued that outstanding debt alone should not result in the immediate revocation of a mining lease. He suggested that keeping the mine operational is the only way to ensure it generates the revenue needed to settle its statutory obligations. Similarly, former Chief Inspector of Mines Obiri Yeboah Twumasi advised the Commission to negotiate a payment plan, noting that the mine is still in its development phase and has not yet started production. NAML has expressed its willingness to engage in dialogue to resolve the dispute, maintaining that a negotiated settlement would better serve the interests of both the state and the mining sector. Advocates warn that if the Commission continues to favor seizure over negotiation, it could send a negative signal to both local and international investors regarding the safety of their capital in Ghana’s extractive industry. The company is currently seeking to have the revocation overturned to protect its significant capital investment and continue its development of the Konongo facility.