Monday, 27 April

Adamus rejects mining lease revocation, cites due process breach

News
Adamus Resources Limited

Adamus Resources Limited has pushed back against the government’s decision to revoke its mining leases, arguing that the move was taken without due process and is based on claims that do not accurately reflect its operations.

In a statement issued after the announcement, the company said it was responding “in the interest of accuracy and public clarity” following the cancellation of its leases covering the Akango, Salman and Nkroful concessions.

“The company strongly rejects the allegations that have been cited as the basis for the revocation and states that they do not reflect the true facts surrounding its operations,” it stated.

Adamus maintained that it operates as a duly licensed entity under valid permits issued within Ghana’s regulatory framework, including approvals from the Minerals Commission and the Environmental Protection Agency, in line with the Minerals and Mining Act, 2006 (Act 703).

The company also raised concerns about what it described as a breach of due process, saying it was neither formally informed of the allegations nor given the opportunity to respond.

“The company was not formally notified of the specific allegations and was not afforded the opportunity to address same as required by the mining laws of Ghana,” it said, adding that the decision undermines “established principles of fairness and administrative justice,” particularly in matters involving long-term investments.

Adamus further denied any involvement in illegal mining or unlawful subcontracting, stressing its commitment to responsible mining and environmental protection.

“The company categorically denies any involvement in illegal mining activities or unlawful subcontracting,” it noted, adding that it remains committed to “strict adherence to Ghana’s laws and regulations.”

The company said it is engaging relevant authorities to resolve the issue and expressed confidence that “a full and fair examination of the facts will demonstrate its compliance with applicable law.” It also indicated plans to take steps to safeguard its legal rights while continuing engagement with stakeholders.

Meanwhile, the Ministry of Lands and Natural Resources announced on April 26 that it had revoked the company’s mining leases following investigations by the Minerals Commission.

According to the Ministry, the decision was based on findings that Adamus engaged in unauthorised mining activities and multiple regulatory violations, including subcontracting without ministerial approval in breach of Section 14 of Act 703, operating without approved mining plans and permits, and failing to obtain the necessary environmental clearances.

The investigations also pointed to the alleged involvement of foreign nationals in illegal mining, operations outside approved concession boundaries, and environmental damage to water bodies and ecosystems.

Citing the seriousness of the breaches, the Minister acted on the recommendation of the Minerals Commission under Section 100(2) of Act 703, stating that the revocation was necessary in the public interest.

“In view of the gravity and deliberate nature of these breaches… immediate revocation of the mineral rights is warranted in the public interest,” the Ministry said.

It added that the action does not rule out possible criminal prosecution of the company, its directors, and management, while assuring that steps would be taken to protect affected workers.

 

The Ministry reaffirmed its commitment to combating illegal mining and ensuring strict compliance within Ghana’s mining sector.

Source: Classfmonline.com/Zita Okwang