Nguvu Mining subsidiary Northern Ashanti Mines has asked Ghana’s High Court to overturn the termination of its mining lease covering the Konongo Gold Mine in the Ashanti Region.
The company filed for judicial review against the Minerals Commission, the Minister for Lands and Natural Resources, and the Attorney-General.
A Minerals Commission letter dated 30 April states that the lease was terminated because Northern Ashanti failed to remedy alleged breaches within the required timeframe. The company disputes this, alleging it was neither notified of the breaches nor given an opportunity to address them.
Northern Ashanti is seeking to have the decision quashed and its mining rights restored. It has also applied for an injunction preventing the government from taking control of the concession or reallocating it while the case is underway.
According to the company’s affidavit, Minerals Commission officials and military personnel visited the site on 22 October and instructed workers to leave. The government has not publicly responded to the allegation.
Northern Ashanti claims approximately US$110 million ($156 million) in committed expenditure could be affected. It says the spending covers equipment, infrastructure, and financing for a partly completed gold processing plant.
The company says its 125km² lease was renewed in 2023 for 13 years. The High Court has not ruled on the termination or granted the requested relief.
Nguvu Mining is a privately held Ghanaian mining group with assets across West Africa. Northern Ashanti Mines, formerly Owere Mines, is its subsidiary developing the Konongo operation.
Write to France Pinzon at Mining.com.au
Main image: Nguvu Mining
