Government has rejected speculation that its decision to revoke the mining leases of Adamus Resources Limited was intended to pave the way for the sale of the company or its assets to another investor.
The Ministry of Lands and Natural Resources said on Wednesday that the revocation was a regulatory action prompted by what it described as “consequential breaches” of Ghana’s mining laws, regulatory requirements and financial obligations.
“There is currently no government decision to sell Adamus Resources Limited or its mining assets,” the ministry said in a statement issued by its Communications Directorate.
The clarification follows the government’s decision to uphold the revocation of Adamus’ mining leases and place the mine under the administrative control of the Minerals Commission.
The ministry said the decision was based on findings from a review by the Minerals Commission, which identified several breaches in the company’s operations.
Among the violations cited by the ministry was mining outside designated and permitted areas without the required operating permit from the Chief Inspector of Mines.
The ministry said the Minerals Commission established that Adamus had undertaken mining activities beyond its approved areas without securing the necessary regulatory authorisation.
Such activities, it said, breached the Minerals and Mining (Health, Safety and Technical) Regulations, including Regulation 200(1)(b), which requires the necessary approvals before mining can be undertaken outside an approved area.
The commission also identified what the ministry described as significant regulatory and operational breaches, saying they undermined the framework designed to ensure that mining is conducted safely, responsibly and within areas approved by the state.
Financial obligations
The government also cited outstanding financial obligations and defaults arising from Adamus’ mining operations.
The ministry said mining-right holders were required to meet not only the technical, environmental and operational conditions attached to their leases but also their statutory financial obligations to the state.
It said the minister’s approval of the revocation was based on Section 5(1) of the Minerals and Mining Act, 2006 (Act 703), acting on the recommendation of the Minerals Commission.
Not a sale
The ministry sought to draw a clear distinction between revocation of a mining lease and the sale of a mining company or its assets.
It said the state, through the Minerals Commission and other relevant institutions, had a responsibility to ensure that Ghana’s mineral resources were exploited in accordance with the law and in a manner that protected the interests of Ghanaians.
“Revocation is a regulatory decision, not a sale,” the ministry said.
It added that where a holder of a mining right failed to comply with the conditions of its lease or applicable laws, the government was required to take appropriate regulatory action.
The government therefore rejected suggestions that the revocation was designed to facilitate the transfer of Adamus’ assets to a preferred investor.
“Any suggestion that the revocation was undertaken to facilitate the sale of the company’s assets to another entity is speculative and does not reflect the basis for government’s decision,” the ministry said.
Government to enforce compliance
The clarification comes as the government moves to assume administrative control of the Adamus mine through the Minerals Commission.
Lands and Natural Resources Minister Armah Kofi Buah said during a recent visit to the mine that the government wanted the operation restored, with the immediate priorities including protecting jobs, addressing outstanding worker payments, resolving safety concerns and getting the processing plant operating again.
The government has said it wants to ensure that the mine’s potential is preserved while protecting the interests of workers and the state.
The ministry said it would continue working with the Minerals Commission and other relevant institutions to ensure that mining companies operating in Ghana complied fully with mining laws, licence conditions and financial obligations.
“Ghana’s mineral resources belong to the people of Ghana, and their exploitation must be conducted within the law and in the greater national interest,” the ministry said.
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