Northern Ashanti Mines has filed an application for an injunction to restrain the state from taking over its mining concession at Konongo pending the determination of a judicial review application challenging the termination of its mining lease.
The move follows an operation on Thursday, October 22 during which officers from the Minerals Commission, accompanied by military personnel, stormed the company’s concession to enforce the termination of its mining lease over alleged breaches that the company had reportedly failed to remedy.
The company is already in court challenging the termination, arguing that the Minerals Commission acted contrary to the mining laws by failing to give prior notice of the alleged breaches and an opportunity to remedy them.
It is therefore seeking an injunction to restrain the Minerals Commission, its assigns and privies from taking over the concession, deploying military personnel to the premises or assigning the concession to any other party pending the final determination of the substantive application.
In an affidavit in support of the injunction, deposed to by Jonathan Adongo, the company’s administrative manager, he stated that the concession was initially handed over to the company in 2010, when it was known as Owere Mines.
He further indicated that the mining lease was renewed in 2023 for a period of 13 years.
However, in April this year, the Minerals Commission, acting on behalf of the Minister of Lands and Natural Resources, informed the company of the termination of its lease over alleged breaches.
Mr. Adongo maintains that the termination was unlawful and is asking the court to restrain the authorities from enforcing the decision until the substantive application has been determined.
He argues that allowing the state to take over the concession, deploy military personnel to the site or assign the concession to another party would cause irreparable damage to the company that could not adequately be compensated for.
According to court documents, the company has invested at least $110 million in its operations. It argues that allowing the takeover to proceed would adversely affect the company and its investors.
The company alleges that it has uncovered plans by the state to assign the concession to some chinese investors.
