Omanghana
Northern Ashanti Mines Limited (NAML) has filed an injunction application at the Commercial Division of the High Court in Accra, seeking to halt the state-led takeover of its Konongo Gold Mine concession.
The application names the Minerals Commission, the Minister for Lands and Natural Resources, and the Attorney-General as respondents. The company is seeking to retain administrative control of the premises pending a court determination on the legality of its mining lease termination.
The legal challenge follows the entry of Minerals Commission officials, accompanied by military personnel, onto the concession on October 22, 2026, to enforce a termination notice issued in April.
NAML disputes the grounds for the action, warning that the takeover threatens substantial investments and the livelihoods of approximately 400 employees. Investment figures cited in connection with the dispute range from US$110 million to US$200 million.
Dispute Over Regulatory Breaches
The Minerals Commission maintains that the lease termination followed several breaches that the company failed to remedy. These allegedly include outstanding debt of US$8.3 million, unpaid employee salaries, and failure to settle mineral rights fees and ground rents.
The regulator also alleges that the concession had been neglected, allowing illegal miners to encroach on open pits and central shafts.
NAML rejects the Commission’s account and specifically disputes the US$8.3 million debt figure. The company says it has committed significant resources to developing the mine’s infrastructure since acquiring the concession.
Company Challenges Termination Process
The dispute also concerns whether the authorities followed the required procedures under the Minerals and Mining Act, 2006 (Act 703).
According to the Commission, the termination underwent a formal review, with the Minister for Lands and Natural Resources affirming the decision after a committee submitted its report on August 10, 2026.
NAML, however, says it wrote to the Commission seeking clarification on the April termination notice but received no response before the enforcement action. It argues that the takeover was undertaken in bad faith and caught the company by surprise.
The company has further alleged that the action is intended to facilitate the transfer of the concession to a rival consortium. That allegation remains contested and has not been established by a court.
Injunction Sought Pending Court Decision
Through its application, NAML is asking the High Court to restrain the takeover while the underlying dispute is determined.
The filing does not itself amount to a court order stopping the enforcement action. No ruling on the injunction application was indicated in the information provided.
Source: Omanghana
