The Minerals Commission has defended its decision to terminate the mining leases and prospecting licences of Northern Ashanti Mines Limited, formerly Owere Mines, citing more than US$8.38 million in unpaid fees and alleged breaches of the Minerals and Mining Act, 2006 (Act 703).
In a statement issued on Tuesday, October 27, 2026, the Commission said it followed the legally prescribed procedures after the company failed to settle outstanding Annual Mineral Right (AMR) fees and remedy other breaches identified by the regulator.
The company has since initiated legal proceedings against the State to challenge the termination, according to the Commission.
The Commission explained that Northern Ashanti Mines acquired a mining lease covering 595 cadastral blocks in January 2010.
Under Section 24 of 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 accumulated US$8.33 million in unpaid fees relating to its mining leases between 2010 and 2025, in addition to US$49,928 owed on prospecting licences covering the period from 2019 to 2025.
On April 14, 2025, the Commission issued Notices to Remedy Breach under Section 68(2) of Act 703 and Regulation 200(3) of the Minerals and Mining Regulations, 2012 (L.I. 2176), directing the company to settle the outstanding amounts.
According to the regulator, the company failed to comply within the stipulated period.
Commission cites lack of mining activity
Beyond the outstanding fees, the Commission said its assessment found that Northern Ashanti Mines had not undertaken meaningful mining operations on the concession for more than two years, which it said constituted a breach of Section 69(1) of Act 703.
The Commission maintained that the company was given an opportunity to regularise its position but failed to remedy the identified breaches.
It said it notified the Minister for Lands and Natural Resources on April 7, 2026, requesting that a notice of termination be served on the company.
The Minister approved the issuance of the notice on April 24, 2026, after which the Commission proceeded with the termination process on April 30, 2026.
The regulator insisted that the decision was taken in accordance with the law and that due process had been followed at every stage.
Indigenous status does not exempt company from obligations
The Commission also rejected suggestions that Northern Ashanti Mines’ status as an indigenous business should exempt it from complying with statutory requirements.
“Once granted, a holder must abide by the rules, whether they are an indigenous company or not, and this includes the payment of statutory fees and the undertaking of meaningful mining operations,” the statement said.
It added that the terminated mineral rights had reverted to the State, but stressed that the termination did not extinguish liabilities incurred by the company before the decision.
The Commission said it would pursue recovery of the outstanding fees and take measures to protect the affected assets against encroachment and other unlawful activities.
“The Commission reserves the right and shall pursue the company to pay all the sums it owes to the State,” it stated.
Legal dispute remains before the courts
The Commission confirmed that Northern Ashanti Mines had initiated legal proceedings challenging the termination after acknowledging receipt of the notice.
It also criticised the company’s media campaign, arguing that its public statements risked undermining the judicial process while the dispute remained before the courts.
The termination and the allegations of statutory breaches are now the subject of legal proceedings initiated by the company.
