The Minerals Commission has defended its decision to terminate the mineral rights of Northern Ashanti Mines Limited, formerly Owere Mines, insisting that the company persistently defaulted on its statutory financial obligations despite several opportunities to settle its outstanding debts.
At a press briefing at the Commission’s head office in Accra on Thursday, October 29, 2026, the Commission said the termination followed years of non-payment of Annual Mineral Right (AMR) fees and repeated failure by the company to honour proposed payment arrangements.
The Commission rejected allegations by Northern Ashanti Mines that the decision was taken in bad faith, stressing that both the Commission and the Minister for Lands and Natural Resources acted within their lawful authority.
According to the Commission, the company acquired a mining lease covering 595 cadastral blocks in January 2010 under the name Owere Mines. Under Section 24 of the Minerals and Mining Act, 2006 (Act 703), and the terms of its lease agreement, the company was required to pay annual mineral right fees.
However, the Commission said the company failed to meet those obligations, leading to a formal Notice to Remedy Breach on May 28, 2020, when its outstanding debt had exceeded US$4 million.
Following the transitional takeover of the company by BCM Investments, the company reportedly proposed settling the debt in four instalments. The Commission said it accepted the principle of the proposed arrangement in June 2020 but requested specific payment dates, which were not provided.
The Commission further disclosed that the proposed payment arrangement was not honoured, prompting another letter on November 5, 2020, notifying the company of its continuing breaches.
Despite further correspondence and notices, the debt continued to rise.
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 increased to approximately US$6.188 million.
The Commission said another notice was served on April 14, 2025, covering unpaid fees relating to both the mining leases and prospecting licences.
At that time, the outstanding debt relating to the mining leases stood at US$8.33 million, while unpaid fees for prospecting licences amounted to US$49,928.
The Commission maintained that the company failed to regularise its position despite the additional opportunity.
On April 7, 2026, the Commission said it formally notified the Minister for Lands and Natural Resources of the company’s persistent non-payment and requested that a termination notice be issued.
The Minister subsequently approved the issuance of the notice, after which the Commission proceeded with the termination of the mineral rights.
Addressing the company’s challenge to the reported debt, the Commission argued that the amount reflected the accumulation of unpaid obligations over several years.
It also disputed the company’s claim that it had paid US$1 million in Annual Mineral Right fees, stating that its records showed payments totalling only US$300,000 in two instalments.
The Commission questioned why the company, which reportedly claimed to have invested US$200 million in the mine, had failed to settle the outstanding US$8 million debt.
It further stated that the termination of the mineral rights did not absolve Northern Ashanti Mines of liabilities incurred before the termination.
According to the Commission, the mineral rights have reverted to the State, which retains the responsibility to protect the assets against encroachment and activities by illegal operators.
The Commission cited Section 70 of Act 703 in explaining the legal framework governing mining assets following the termination of mineral rights.
It also indicated that it would continue pursuing the company for the outstanding amounts owed to the State.
The Commission concluded that the termination was carried out in accordance with the law and that the company had been given several opportunities to settle its obligations.
It maintained that the country’s mineral resources must be managed in the public interest and that companies granted mineral rights must fulfil the conditions attached to those rights.
The termination remains contested by Northern Ashanti Mines Limited, which has taken legal action against the Minister, the Minerals Commission and the Attorney-General.
