The Ministry of Lands and Natural Resources has defended the government’s decision to uphold the revocation of the mining leases of Adamus Resources Limited, insisting that the action was based on alleged regulatory breaches and outstanding financial obligations, rather than any plan to sell the company or its assets.
The Ministry said the decision followed investigations and findings by the Minerals Commission, which it said identified several breaches in the company’s mining operations.
According to the Ministry, Adamus Resources carried out mining activities beyond its approved operational areas without obtaining the required Operating Permit from the Chief Inspector of Mines.
It said the conduct amounted to a violation of Ghana’s mining regulations, including Regulation 200(1)(b) of the Minerals and Mining (Health, Safety and Technical) Regulations.
The Ministry further cited what it described as “significant regulatory and operational breaches” associated with the company’s activities, arguing that mining companies holding state-issued leases must operate strictly within the boundaries and conditions approved by the relevant authorities.
Financial obligations
In addition to the alleged operational breaches, the government said the Minerals Commission identified outstanding financial obligations and defaults linked to Adamus Resources’ mining operations.
The Ministry maintained that companies granted mining rights have a responsibility to comply with all conditions attached to their leases, including technical, environmental and financial requirements.
It said the government’s decision to uphold the revocation was made pursuant to Section 5(1) of the Minerals and Mining Act, 2006 (Act 703), based on a recommendation from the Minerals Commission.
Adamus rejects government’s position
The government’s explanation follows a strong response from Adamus Resources, which has rejected the revocation and described it as unlawful.
The company said it received the decision with “shock and disappointment” and denied the allegations levelled against it.
Adamus has also accused the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, of failing to follow procedures prescribed by law.
The company has indicated that it intends to appeal the decision.
The dispute therefore sets the stage for a potentially significant legal and regulatory contest between the mining company and the government over the validity of the lease revocation.
Government denies asset sale claims
The Lands Ministry has also sought to dismiss claims that the revocation is intended to clear the way for the sale of Adamus Resources or its mining assets.
It described such claims as speculative and stressed that the government has no current decision to sell the company or its assets.
The Ministry said the revocation should instead be viewed within the broader framework of enforcing Ghana’s mining laws and protecting the public interest.
It maintained that the government’s position is based on compliance, legality and accountability, rather than an attempt to transfer the company’s assets to a preferred investor.
The controversy surrounding Adamus Resources now places the enforcement of Ghana’s mining regulations, the protection of state interests and the rights of mining companies under renewed public scrutiny.
As Adamus prepares to challenge the decision, the outcome of the expected appeal could have wider implications for how mining leases are regulated, enforced and revoked in Ghana.
Story by Sheila Otuo – Baffour