File photo of mining equipment
Northern Ashanti Mines Company Limited has turned to the High Court in Accra to block a proposed government takeover of its Konongo Gold Mine, warning that investments worth approximately US$110 million could be jeopardised.
The company has filed an injunction application at the Commercial Division of the High Court, seeking to prevent the Minerals Commission and the Minister for Lands and Natural Resources from taking possession of the concession or transferring the mineral rights to other parties.
The application, which also names the Attorney-General as a respondent, seeks to maintain the company's control of the mine until the court determines the legality of the decision to terminate its mining lease.
In an affidavit supporting the application, the company's Administrative Manager, Jonathan Adongo, alleges that officials of the Minerals Commission, accompanied by military personnel, visited the mine on October 22, 2026, and directed the company, its employees and workers to vacate the site, offices and residential facilities by midday.
Adongo described the situation as urgent, arguing that a takeover before the court rules on the dispute could expose the company's assets, operations and investments to significant risks.
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“The threatened military takeover is imminent, and I humbly pray this Honourable Court to hear this application with urgency,” he stated in the affidavit.
The legal action follows a termination notice dated April 30, 2026, issued by the Minerals Commission on behalf of the Minister for Lands and Natural Resources.
The notice reportedly accused the company of failing or refusing to address breaches within the prescribed statutory and regulatory period. However, Northern Ashanti Mines has disputed the allegations, maintaining that it was never formally notified of any breaches and was not given an opportunity to correct them or explain why its mineral rights should not be revoked.
The company further claims that its attempts to obtain a review of the decision have yielded no response.
According to the affidavit, its lawyers wrote to the relevant authorities on May 4, 2026, while a petition seeking a reversal of the termination decision was submitted on May 20, 2026. The company says neither communication received a response.
Northern Ashanti Mines says it has invested more than US$83.34 million in the development of the Konongo concession.
The company has also secured financing exceeding US$30 million to support the construction of a gold processing plant, which it says is more than 50 per cent complete.
It estimates its total committed expenditure at approximately US$110 million, warning that the proposed takeover could undermine the investment and disrupt ongoing development work.
The company also says its operations support approximately 422 direct and indirect jobs, raising concerns about the potential impact of a takeover on workers and their livelihoods.
Northern Ashanti Mines, formerly known as Owere Mines Limited, is a wholly Ghanaian-owned company redeveloping the historic Konongo Gold Mine in the Ashanti Region.
The company states that its mining lease was renewed on February 2, 2023, for a period of 13 years, covering approximately 125 square kilometres.
It maintains that the renewed lease was ratified by Parliament and remains valid until February 1, 2036.
The company is therefore challenging the termination decision and asking the court to preserve its rights over the concession while its judicial review application is pending.
Beyond preventing the physical takeover of the mine, the injunction application seeks to restrain the deployment of security personnel to enforce the termination and prohibit the granting, transfer or reallocation of mineral rights over the disputed concession.
The company argues that a forcible takeover could pose safety risks to employees and nearby communities, damage equipment and compromise exploration records and geological data accumulated during its operations.
It maintains that allowing the government to take possession of the site before the court determines the dispute could cause substantial harm to its business and investments.
Northern Ashanti Mines is asking the court to preserve the existing situation and allow it to remain in possession of the Konongo concession until a final determination is made on the legality of the lease termination.
The court's determination of the application will be a key step in resolving the immediate dispute over possession of the mine while the underlying legal challenge proceeds.
AM
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