Northern Ashanti Mines seeks injunction to block government takeover of $110m mine investment

Northern Ashanti Mines Limited Company has filed an injunction application seeking to stop a government takeover of its Konongo concession, warning that about $110 million in committed expenditure is at risk.

The application, filed at the Commercial Division of the High Court in Accra, seeks to restrain the Minerals Commission and the Minister for Lands and Natural Resources from taking possession of the mine or reallocating it to third parties.

The company wants the restrictions to remain in place until the court determines its challenge to the termination of its mining lease. The Attorney-General is also named as a respondent.

In a supporting affidavit, Administrative Manager Jonathan Adongo alleges that Minerals Commission officials, accompanied by military personnel, visited the mine on October 22, 2026.

He says they ordered the company, its staff and workers to vacate the mine, offices and residential accommodation by midday that day.

The company argues that any takeover before the court determines the legality of the lease termination would threaten its investment, equipment and operations.

“The threatened military takeover is imminent, and I humbly pray this Honourable Court to hear this application with urgency,” Mr Adongo states.

According to the affidavit, Northern Ashanti Mines is wholly Ghanaian-owned and was formerly known as Owere Mines Limited. It is redeveloping the historic Konongo Gold Mine in the Ashanti Region.

The company says it renewed its lease on February 2, 2023, for 13 years, covering about 125 square kilometres. It maintains that Parliament ratified the renewed lease, which runs until February 1, 2036.

It says it has committed capital and incurred expenditure exceeding US$83.34 million on the concession. It also recently secured a facility of more than US$30 million to develop a gold processing plant, which it describes as more than 50% complete.

The affidavit puts its committed expenditure at about US$110 million and says the company employs approximately 422 people directly and indirectly.

The dispute follows a termination notice dated April 30, 2026, issued by the Minerals Commission on behalf of the minister.

The notice, attached to the application, states: “Your company failed to remedy and/or refused to remedy the breaches which were served within the statutory and regulatory timeframe.”

Northern Ashanti Mines disputes that position. It says no notice of any breach was served and that it was given no opportunity to remedy alleged breaches or explain why its mineral rights should not be cancelled.

The company says it received no response to a letter from its lawyers dated May 4 and a petition dated May 20 seeking a review and reversal of the decision.

Its injunction application also seeks to prevent security deployments intended to enforce the termination and to stop the granting or transfer of mineral rights over the concession.

The company argues that a forcible takeover could endanger staff and surrounding communities, damage equipment and destroy exploration records and geological data.

It is asking the court to preserve its possession of the concession pending the final determination of its judicial review application.