Exton Cubic threatens legal action over revocation of bauxite lease

Director of Communications of Exton Cubic Limited, Samuel Gyamfi, says the company is speaking to its lawyers and may file a legal suit against the government for revoking a mining lease to prospect for bauxite at Nyinahin in the Ashanti Region.

The company, a subsidiary of Engineers and Planners, a company owned by Ibrahim Mahama, brother of former President John Mahama, has described as “disappointing” and “sad,” the decision by Lands and Natural Resources Minister, John Peter Amewu, to revoke the lease that granted it access to the Tano Offin Forest Reserve.

Speaking at a press conference on Monday, Mr. Amewu said the company failed to obtain an environmental permit, operational permit for exploration, and that violated some statutory infractions which necessitated the action taken against them.

Mr. Amewu and his colleague minister in the Ashanti Region Samuel Osei Mensah had previously disagreed on the issue, with the latter disregarding a plea from his colleague to allow the company enter the forests to prospect for bauxite.

But Mr. Gyamfi said Exton will seek legal advice from lawyers for the next steps to take. According to him, two separate letters from the ministry, which he described as contradictory, were sent to his outfit at different times making claims which he said are “false.”

“It is sad and worrying and very unfortunate that a local Ghanaian business engaging in this venture will be subjected to this (frustration) this much,” he told Accra based Joy Fm.

“We want to assure our sympathizers to remain calm, there is no cause for alarm, we have gone through the letters and there is no legal justification for what the government has done,” he added.

Mr. Gyamfi said their aim is to establish an aluminum industry which would lead to the creation of twenty thousand jobs over a period of time.