Kofi Bentil: Ghana Minerals Commission Undermines Northern Ashanti Mines

• Kofi Bentil of IMANI Africa has accused Ghana's Minerals Commission of undermining local mining companies through questionable rights revocations.
• Northern Ashanti Mines Limited disputes the Commission's claims and states it did not receive proper notice before its lease and license were revoked.
• The company claims to have invested over US$100 million in its Konongo mine since 2019.
• Bentil highlighted that the Minerals and Mining Act, 2006 (Act 703) mandates specific notice and remedy periods before lease revocation.
• He also raised concerns about ministerial actions contradicting presidential instructions and a fatal incident at Narawa Mines.

The company maintains it never received the mandatory notice of a statutory breach, which is a prerequisite before the revocation of its mining lease and prospecting license.

Kofi Bentil, the Vice President of IMANI Africa, has publicly accused the Ghana Minerals Commission of systematically undermining Ghanaian-owned mining enterprises. He specifically highlighted what he described as questionable revocations of mining rights, urging governmental intervention to ensure adherence to legal statutes.

Bentil's concerns center on the Commission's actions against companies such as Northern Ashanti Mines Limited, Adamus Resources, and Narawa Mines. He suggests these actions contradict Ghana's policy aimed at increasing local participation and ownership in the mining sector. He characterized this pattern as Ghanaian politicians supporting the seizure of local mines, raising questions about the nation's commitment to its indigenisation policy.

Central to these allegations is the case of Northern Ashanti Mines Limited, which has challenged the Minerals Commission's rationale for seizing its Konongo premises. The company asserts that the regulator made inaccurate statements regarding its financial obligations and operational activities. Northern Ashanti Mines, which claims to have invested over US$100 million in developing the mine since acquiring it in 2019, explicitly disputes the Commission's assertion of compliance with Section 68 of the Minerals and Mining Act, 2006 (Act 703).

The company maintains it never received the mandatory notice of a statutory breach, which is a prerequisite before the revocation of its mining lease and prospecting license. Bentil emphasized that the Minerals and Mining Act outlines a specific procedure for addressing breaches, including a statutory period during which a leaseholder can rectify any non-compliance before revocation. He pointed out that the law provides "two windows," including a 120-day period, for such remedies. He questioned whether the Commission had adhered to these critical legal requirements and called upon Emmanuel Armah-Kofi Buah, the Minister for Lands and Natural Resources, to provide an explanation for the Commission's conduct.

Bentil underscored that mining represents a significant, long-term capital investment, cautioning that abrupt regulatory decisions that disrupt operations can severely erode investor confidence. He noted that Northern Ashanti Mines reportedly invested approximately US$200 million in its project. He further suggested that the operational difficulties faced by the company should be evaluated within their technical context, indicating his understanding that the mine was engaged in stockpiling ore rather than processing gold.

Beyond Northern Ashanti Mines, Bentil raised concerns about inconsistencies in the handling of other mining disputes, citing Adamus Resources. He mentioned seeing documentation that suggested the Minister issued a subsequent letter altering instructions previously given by the President regarding this case, questioning the legitimacy of such changes. Additionally, Bentil highlighted a grave incident at Narawa Mines, where armed individuals allegedly entered the site, resulting in a fatality. He described this as a serious criminal and regulatory matter demanding thorough investigation, asserting that these issues extend beyond individual lease disputes to broader systemic concerns.

Lawyers advising mining companies in Ghana should closely monitor the Minerals Commission's adherence to statutory procedures, particularly notice and remedy periods under the Minerals and Mining Act, 2006 (Act 703), before revoking mining leases. This situation highlights potential legal challenges against regulatory actions and underscores the importance of ensuring due process is followed to protect investor confidence and local ownership in the mining sector.

Source: Original reporting via Ghanaian media outlets.