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Minerals Commission rejects Narawa’s claims of unlawful mining lease termination

Minerals Commission 1 Minerals Commission

Thu, 22 Oct 2026 Source: www.ghanaweb.com

The Minerals Commission has dismissed allegations by Narawa Company Limited that its mining leases were unlawfully terminated, and its operations handed over to another individual.

According to the commission, the termination followed due legal process after the company failed to settle outstanding mineral rights fees amounting to US$909,127.79.

In a statement issued on Tuesday, October 20, 2026, the Commission described the allegations as false and misleading, maintaining that the termination of Narawa’s Nsutam and Osiem mining leases was carried out in accordance with Ghana’s mining laws and regulations.

The Commission explained that Narawa was legally obligated under Section 24 of the Minerals and Mining Act, 2006 (Act 703), and Clause 27 of its mining lease agreement with the Government of Ghana to pay annual mineral rights fees.

However, the company allegedly defaulted on these obligations, accumulating an outstanding debt of US$909,127.79.

According to the Commission, several notices were issued to Narawa to remedy the breach in accordance with Section 68(2) of Act 703 and Regulation 200(3) of the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176).

Despite these notices, the company reportedly failed to settle the outstanding amount within the stipulated period.

Consequently, the Commission, in a letter dated July 29, 2025, recommended to the Minister for Lands and Natural Resources the termination of Narawa's mining leases.

The recommendation was subsequently approved by the Minister on August 19, 2025, after which a formal notice of termination was issued to Narawa on September 3, 2025.

The Minerals Commission maintained that following the termination, Narawa ceased to hold any valid mineral rights or interests in the Nsutam and Osiem concession areas.

It explained that the mineral rights reverted to the State, making any subsequent mining activities undertaken by Narawa within the affected concessions unlawful.

"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 statement said.

The Commission further warned that any mining activity undertaken by Narawa on the concessions after the termination would constitute illegal mining.

Responding to claims that Narawa's mining operations had been forcibly taken over and handed to another individual, the Commission categorically denied authorising or facilitating any invasion of the concessions.

It clarified that following the termination of Narawa's leases, the State exercised its legal authority to grant new mineral rights over the affected areas to two separate entities.

According to the Commission, the new operators are conducting their activities in accordance with the country's mining laws and regulatory requirements.

"The Minerals Commission did not and has not sanctioned or permitted any invasion of the area," the statement emphasised.

The Commission insisted that the allocation of the mineral rights to the new entities was lawful and should not be misconstrued as an illegal takeover of Narawa's operations.

Meanwhile, the Commission disclosed that Narawa has initiated arbitration proceedings challenging the termination of its mining leases.

According to the statement, the proceedings, dated December 12, 2025, remain pending.

The Commission, however, stressed that the commencement of arbitration does not automatically invalidate the termination of the leases.

It maintained that until a final determination is made, the termination remains legally effective.

The Commission also criticised Narawa for taking its grievances to the media while the substantive dispute remains before a competent adjudicatory body.

It described the company's public allegations as an attempt to misrepresent the facts and influence public opinion on a matter already undergoing legal proceedings.

"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," the statement noted.

The Minerals Commission reiterated its commitment to ensuring transparency, accountability and strict compliance with the laws governing Ghana's mineral resources.

It stressed that mining companies operating in the country must fulfil their statutory and contractual obligations, including the timely payment of mineral rights fees.

The Commission further maintained that it would not allow what it described as misinformation or attempts to circumvent established legal procedures to undermine its regulatory responsibilities.

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"The Minerals Commission remains committed to the transparent and lawful administration of Ghana's mineral resources and will not be swayed by attempts to misinform the public or circumvent due legal process," the statement concluded.

The statement was signed by the Commission's Communications and Corporate Affairs Directorate.



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Source: www.ghanaweb.com