Minerals Commission terminates Northern Ashanti Mines lease over $8.33m debt

The Minerals Commission of Ghana has defended its decision to terminate the mining leases and prospecting licenses of Northern Ashanti Mines Limited, formerly known as Owere Mines. The Commission cited the company's failure to pay approximately $8.33 million in statutory annual mineral rent fees accumulated between 2010 and 2025, alongside an additional $49,928 in prospecting license fees. Beyond the financial delinquency, the Commission stated that the company had failed to conduct meaningful mining operations for more than two years, constituting a significant breach of the Minerals and Mining Act, 2006.

According to the Commission, the Minister for Lands and Natural Resources approved the termination on April 24, 2026, after the company ignored multiple notices to rectify its breaches. The termination officially took effect on April 30, 2026. Despite the revocation of the licenses, the Commission emphasized that Northern Ashanti Mines remains legally liable for the outstanding debt to the state. The regulator maintained that due process was followed and that statutory compliance is mandatory for all mining entities, regardless of whether they are indigenous or foreign-owned.

In response, Fredrick Okine, a director and shareholder of Northern Ashanti Mines, expressed alarm over the state's actions, claiming the company had invested nearly $200 million into the Konongo project. This investment included the construction of a new processing plant supported by local banks and the employment of approximately 400 workers. Okine alleged that the company was not given adequate clarification on the termination before an enforcement operation was carried out on October 22, 2026. He further claimed that Chinese nationals were seen inspecting the site under the supervision of Commission officials even before the formal notification of the lease termination was received.

The enforcement action on the concession was reportedly handled by the National Anti-Illegal Mining Operations Secretariat (NAIMOS) with military support. Okine criticized the operation as overly aggressive, alleging that security personnel used dogs and brandished weapons while giving the 400 workers only two and a half hours to vacate the premises. The company has since initiated legal proceedings against the state, filing for an injunction to prevent a takeover of the concession pending a judicial review. The Minerals Commission has dismissed these legal moves as an attempt to manipulate public opinion and reiterated its commitment to enforcing mining regulations across the sector.