The Minerals Commission has defended its decision to terminate the mining leases of Northern Ashanti Mines Limited, formerly known as Owere Mines, over $8.33 million in unpaid mineral right fees owed to the State.
Chief Executive Officer of the Minerals Commission, Isaac Andrews Tandoh, disclosed that the company had repeatedly failed to meet its statutory financial obligations despite receiving several payment reminders and opportunities to clear the outstanding debt.
Speaking at a press briefing in Accra on Thursday, October 29, 2026, Mr Tandoh explained that Northern Ashanti Mines acquired a mining lease covering 595 cadastral blocks in January 2010. Under Ghana’s Minerals and Mining Act, 2006 (Act 703), the company was required to pay annual mineral right fees.
According to the Commission, the company’s unpaid fees exceeded $4 million by May 2020. Although the company proposed settling the arrears in four instalments following its takeover by BCM Investments, it failed to honour the proposed payment arrangement.
The outstanding debt subsequently increased to $5.59 million in October 2022 and approximately $6.19 million by December 2022.
By April 2025, the company’s unpaid obligations had risen to $8.33 million for mining leases, alongside $49,928 in outstanding fees for prospecting licences covering the period from 2019 to 2025.
The Minerals Commission subsequently recommended the termination of the company’s mineral rights to the Minister for Lands and Natural Resources on April 7, 2026. Following ministerial approval, the Commission issued the termination notice.
Minerals Commission Disputes Company’s Payment Claims
Mr Tandoh rejected Northern Ashanti Mines’ claims that the Commission had overstated its outstanding debt.
He maintained that the company’s records showed only $300,000 had been paid towards annual mineral right fees in two instalments, contrary to the company’s reported claim of $1 million in payments.
He also questioned why the mining company had failed to settle its outstanding obligations despite reportedly investing $200 million in its mining operations.
Terminated Mining Rights Revert to the State
The Minerals Commission CEO confirmed that Northern Ashanti Mines had initiated legal action against the Minister for Lands and Natural Resources, the Minerals Commission and the Attorney-General over the termination of its mining leases.
He insisted that the company must address the dispute through the courts rather than public commentary.
Mr Tandoh further explained that the terminated mineral rights had reverted to the State, although the company remained responsible for all financial liabilities accumulated before the termination.
He added that the Commission would pursue the recovery of outstanding payments and take steps to protect the mining assets against encroachment and illegal mining activities in accordance with Section 70 of Act 703.
The Commission maintained that the termination followed the legal requirements and that Northern Ashanti Mines had been given several opportunities to settle its debts.
The development highlights Ghana’s efforts to enforce mining regulations, recover unpaid mineral royalties and fees, protect state-owned mineral resources and ensure mining companies comply with their financial obligations.
Source: newsthemegh.com