Northern Ashanti Mines files injunction to stop $110m Konongo mine takeover

Northern Ashanti Mines Company Limited has initiated legal action at the High Court in Accra to halt a government takeover of its Konongo mining concession. The company filed an injunction application seeking to restrain the Minerals Commission and the Minister for Lands and Natural Resources from seizing or reallocating the site, which represents a $110 million investment. The legal move follows a recent visit by Minerals Commission officials, supported by military personnel, who reportedly ordered the company to vacate the premises following the termination of its mining lease.

According to the mining firm, the termination of its lease was conducted without a fair hearing or a proper opportunity to address any alleged breaches of contract. Northern Ashanti Mines contends that the notice it received was unjust and legally flawed, arguing that the court must determine the legality of the termination before the state can take possession. The company asserts that approximately $110 million in committed expenditures is currently at risk due to the government's attempt to reallocate the mine.

In its application, the company expressed concerns that a forced takeover could lead to operational instability and potentially compromise the safety of surrounding local communities. The presence of military personnel during the site visit has heightened these concerns. The company is asking the court to maintain the status quo until the substantive legal issues regarding the mining rights are resolved, arguing that a premature eviction would cause irreparable damage to its business interests and the broader investment climate.

The High Court is expected to hear the application for an interlocutory injunction to determine if the Minerals Commission and the Ministry can proceed with the takeover. This case highlights ongoing tensions between private mining firms and regulatory bodies over lease compliance and the procedures for state intervention in the extractive sector. The outcome will be closely watched by stakeholders concerned with the security of mineral rights and investment protection in Ghana.