The Minerals Commission has defended its decision to terminate the Nsutam and Osiem mining leases held by Narawa Company Limited, saying the company failed to pay more than US$909,000 in outstanding annual mineral right fees despite being given an opportunity to settle the debt.
In a press release dated October 20, 2026, the Commission rejected allegations that it unlawfully terminated the leases and handed the mining concessions to another individual. It maintained that the decision followed the procedures established under Ghana’s mining laws.
The Commission described Narawa’s allegations as “false” and said its statement was intended to clarify 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), as well as Clause 27 of its mining lease agreements with the Government of Ghana.
However, the company allegedly accumulated outstanding fees totalling US$909,127.79.
The Commission said it issued notices directing Narawa 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).
It maintained that the company failed to settle the outstanding amount within the stipulated period, prompting it to proceed with 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 approved the recommendation on August 19, 2025, after which a formal termination notice was issued to Narawa on September 3, 2025.
Commission says mining rights reverted to the state
Following the termination, the Commission said Narawa ceased to hold any valid mineral rights or interests in the Nsutam and Osiem concession areas.
It argued that the rights reverted to the state, allowing the government to grant new mineral rights over the areas to two other entities.
According to the Commission, the two entities are currently operating in compliance with the relevant laws and regulatory requirements.
The Commission also denied authorising or permitting any invasion of the concessions, disputing Narawa’s account of how the former mining areas were taken over.
It further warned that any mining activities undertaken by Narawa on the concessions after the termination date would constitute illegal mining, given its position that the company no longer holds valid rights over the areas.
Narawa challenges termination through arbitration
Despite the Commission’s position, the dispute remains unresolved.
The Commission disclosed that Narawa initiated arbitration proceedings on December 12, 2025, to challenge the termination of its mining leases.
The proceedings are still pending, but the Commission insists that the termination remains legally effective unless a final determination alters that position.
It also 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.
The dispute centres on whether the termination was properly carried out and whether the Commission’s actions should stand while the challenge remains unresolved.
Commission maintains its position
Reaffirming its stance, 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.
With the arbitration proceedings still pending, the Commission’s statement sets out its justification for terminating the leases, while the final outcome of Narawa’s challenge remains to be determined.
