Minerals Commission defends termination of Northern Ashanti Mines’ licences over $8.38m debt

The Minerals Commission has defended its decision to terminate the mining leases and prospecting licences of Northern Ashanti Mines Limited, formerly Ower 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 process after the company failed to settle outstanding Annual Mineral Right (AMR) fees or remedy other breaches identified by the regulator.

The company has instituted legal proceedings against the State to challenge the termination, according to the Commission.

The Commission said 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 had accumulated US$8.33 million in unpaid fees relating to its mining leases for the period from 2010 to 2025, alongside US$49,928 owed on prospecting licences covering 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), requiring the company to settle the outstanding amounts.

The Commission said the company failed to comply within the stipulated period.

Beyond the unpaid 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.

It said this constituted a breach of Section 69(1) of Act 703.

According to the Commission, the company was given an opportunity to regularise its position but failed to remedy the identified breaches.

The Commission 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, and the Commission proceeded with the termination process on April 30, 2026.

It maintained that the decision was taken in accordance with the law and that due process had been followed at every stage.

The Commission also rejected suggestions that the company’s status as an indigenous business should exempt it from statutory obligations.

“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 Commission stated.

The Commission said the terminated mineral rights had reverted to the State, without extinguishing liabilities the company incurred before the termination.

It said it would pursue the recovery of the outstanding fees and take steps 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,” the statement said.

The Commission confirmed that Northern Ashanti Mines had initiated legal proceedings challenging the termination after acknowledging receipt of the notice.

It criticised the company’s media campaign, arguing that its public statements risked undermining the judicial process while the dispute remained before the courts.