Minerals Commission defends termination of Narawa’s Nsutam, Osiem mining leases

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Minerals Commission

The Minerals Commission has defended its decision to terminate the mining leases of Narawa Limited over the Nsutam and Osiem concessions, citing an outstanding debt of US$909,127.79 in annual mineral right fees.

The Commission said the termination followed established legal procedures after the company failed to settle its outstanding obligations within the stipulated period, rejecting allegations that it had wrongfully seized the concessions or handed the operations over to an individual.

In a statement, the Commission said Narawa, which held the two mining leases, was required 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 right fees.

It said the company defaulted on its obligations, prompting the Commission to issue notices 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).

According to the Commission, Narawa failed to make the required payments within the prescribed period, leading to a recommendation for termination being submitted to the Minister for Lands and Natural Resources on July 29, 2025.

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

The Commission maintained that the process was lawful and that the mineral rights reverted to the State following the termination.

It said Narawa no longer had any valid mineral right, interest or entitlement over the Nsutam and Osiem concession areas, warning that any mining activity undertaken by the company on the concessions after the termination date would constitute illegal mining.

The Commission also denied authorising or permitting any invasion of the concession areas, explaining that the State had subsequently granted new mineral rights over the areas to two separate entities.

It said the two entities were operating within the law and complying with the applicable statutory and regulatory requirements.

The dispute, however, remains unresolved, with the Commission disclosing that Narawa initiated arbitration proceedings on December 12, 2025, to challenge the termination of its mineral rights.

The Commission said the proceedings were pending, but insisted that the termination remained in force until a final determination was made.

It further criticised the company’s resort to public allegations while the substantive dispute was before a competent adjudicatory forum, describing such claims as misleading.

The Commission reaffirmed its commitment to the transparent and lawful administration of Ghana’s mineral resources, adding that it would not be swayed by attempts to misinform the public or circumvent due legal process.

The Minerals Commission, through its Communications and Corporate Affairs department, reaffirmed its commitment to the transparent and lawful administration of Ghana’s mineral resources, adding that it would not be swayed by attempts to misinform the public or circumvent due legal process.

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