Thursday, 22 October

Minerals Commission denies unlawfully terminating Narawa’s mining leases

Business
Minerals Commission

The Minerals Commission has denied allegations by Narawa Company Limited that it wrongfully, forcibly or unlawfully terminated the company’s mining leases and handed its operations over to another individual.

The Commission said the allegations were false and misrepresented the facts and legal process that led to the termination of the leases.

Narawa held the Nsutam and Osiem Mining Leases and was required under Section 24 of the Minerals and Mining Act, 2006 (Act 703), and the mining lease agreement with the government to pay annual mineral right fees.

According to the Minerals Commission, Narawa defaulted on the payments and owed US$909,127.79.

The Commission said it subsequently issued Notices to Remedy Breach under Section 68(2) of Act 703 and Regulation 200(3) of the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176).

It said Narawa failed to settle the outstanding amount within the stipulated period.

The Commission then recommended termination of the leases to the Minister for Lands and Natural Resources in a letter dated July 29, 2025.

The Minister approved the recommendation on August 19, 2025, after which a formal Notice of Termination was issued to Narawa on September 3, 2025.

“With the termination of the leases, Narawa no longer holds any valid mineral right, interest, or entitlement to the Nsutam and Osiem concession areas as the mineral rights have reverted to the State,” the Commission said.

It added that any activities by Narawa on the concessions after the termination date would constitute illegal mining.

The Commission also denied claims that it sanctioned or permitted an invasion of the concessions.

“The Minerals Commission did not and has not sanctioned or permitted any invasion of the area,” it said.

According to the Commission, the State has since granted new mineral rights over the area to two different entities, which are currently operating in accordance with the law and relevant statutory and regulatory requirements.

Arbitration proceedings

The Commission said Narawa has challenged the termination through arbitration proceedings dated December 12, 2025.

It said the matter remains pending and the termination of the leases continues to have effect until a final determination is made.

The Commission criticised what it described as Narawa’s decision to take the matter to the media while the substantive dispute is pending.

“It is therefore improper and misleading for Narawa to resort to media trials with false allegations when the same substantive matter is before a court of competent jurisdiction,” it said.

The Minerals Commission said it remains committed to the transparent and lawful administration of Ghana’s mineral resources.

It added that it would not be swayed by attempts to misinform the public or circumvent due legal process.

The statement was signed by the Communications and Corporate Affairs Directorate of the Minerals Commission.

Source: classfmonline.com