The Minerals Commission has defended its decision to terminate the Nsutam and Osiem mining leases held by Narawa Company Limited, saying the company owed the state agency US$909,127.79 in annual mineral right fees and failed to settle the debt despite being given the opportunity to remedy the breach.

In a press release dated October 20, 2026, the Commission rejected allegations that it wrongfully or unlawfully terminated the leases and handed the mining operations over to an individual, insisting that the decision followed the procedures prescribed by law.

The Commission described Narawa’s allegations as “false” and a misrepresentation of the facts, adding that it was issuing the clarification to set the record straight on the circumstances surrounding the termination.

According to the Commission, Narawa was required to pay annual mineral right fees under Section 24 of the Minerals and Mining Act, 2006 (Act 703), and Clause 27 of its mining lease agreements with the Government of Ghana.

However, the company allegedly accumulated outstanding fees of US$909,127.79, prompting the Commission to issue notices requiring it to remedy the breach.

The Commission said the notices were issued in accordance with Section 68(2) of Act 703 and Regulation 200(3) of the Minerals and Mining (Licensing) Regulations, 2012 (L.I. 2176).

It maintained that Narawa failed to settle the outstanding fees within the stipulated period, leading to the next stage of the termination process.

The Commission said it recommended the termination of the leases to the Minister for Lands and Natural Resources in a letter dated July 29, 2025. The minister subsequently approved the recommendation on August 19, 2025, before a formal notice of termination was issued to Narawa on September 3, 2025.

Commission says mining rights have reverted to the state

Following the termination, the Commission argues that Narawa ceased to hold any valid mineral right, interest or entitlement to the Nsutam and Osiem concession areas.

It said the mineral rights reverted to the state, paving the way for the government to grant new mineral rights over the areas to two other entities.

According to the Commission, the two entities are currently operating within the law and complying with the applicable statutory and regulatory requirements.

The Commission also denied authorising or permitting any invasion of the concessions, directly challenging Narawa’s claims surrounding the circumstances under which its former mining areas were taken over.

It further argued that any mining activity undertaken by Narawa on the concessions after the termination date would constitute illegal mining, given its position that the company no longer holds valid mineral rights over the areas.

Narawa challenges termination through arbitration

The dispute, however, remains unresolved.

The Commission disclosed that Narawa initiated arbitration proceedings on December 12, 2025, to challenge the termination of its mining leases.

It said the proceedings remain pending but insisted that the termination continues to have legal effect until a final determination changes the position.

The Commission consequently criticised Narawa for taking its allegations to the media while the substantive dispute is before an arbitral forum.

“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 said.

Commission insists on lawful administration of mineral resources

Reaffirming its position, the Minerals Commission said it remained committed to the transparent and lawful administration of Ghana’s mineral resources.

It added that it would not be swayed by attempts to misinform the public or circumvent due legal process.

EA