The government has justified its move to confirm the cancellation of Adamus Resources Limited’s mining leases, pointing to illegal operations outside approved zones, regulatory violations and unpaid dues.
The Ministry of Lands and Natural Resources (MLNR) said the action followed a review by the Minerals Commission which found that the company had flouted Ghana’s mining laws and failed to meet regulatory standards.
The response comes after Adamus Resources condemned the government’s decision to uphold the cancellation, calling it illegal and accusing Lands and Natural Resources Minister, Emmanuel Armah-Kofi Buah, of ignoring legal processes.
Adamus said it received the ruling with “shock and disappointment”, rejected the claims made against it and indicated it would challenge the cancellation.
According to the ministry, the Minerals Commission determined that Adamus had carried out mining beyond its licensed area without securing the necessary Operating Permit from the Chief Inspector of Mines.
“This constitutes a breach of the applicable mining regulations, including Regulation 200(1)(b) of the Minerals and Mining (Health, Safety and Technical) Regulations,” the ministry said.
It added that the Commission also uncovered “significant regulatory and operational breaches” linked to the company’s activities. The ministry noted that the violations weakened the rules governing mining and emphasised that firms with mining rights must work strictly within areas approved by the state.
Financial lapses were also cited as grounds for the decision. “The Commission also established that Adamus Resources Limited had outstanding financial obligations and defaults arising from its mining operations,” the statement said.
The ministry said lease holders are expected to meet not just the technical and environmental terms of their agreements, but also their legal financial commitments to the state. It further stated that the Minister approved the cancellation under Section 5(1) of the Minerals and Mining Act, 2006 (Act 703), based on advice from the Minerals Commission.
The government also dismissed claims that the cancellation was meant to set up a sale of Adamus Resources or its assets. “The Ministry wishes to state categorically that the revocation of the mining leases is not a decision to sell Adamus Resources Limited or its mining assets,” it said.
It stressed there is presently no plan by government to sell the company or its assets and called suggestions of a planned sale speculative.
“There is currently no Government decision to sell Adamus Resources Limited or its mining assets,” the ministry said. The ministry insisted the government’s action was driven by “compliance, legality and protection of the public interest” and not by any plan to hand over the company’s assets to a favored buyer.
