The government has defended its decision to uphold the revocation of Adamus Resources Limited’s mining leases, citing alleged mining outside approved areas, regulatory breaches and outstanding financial obligations.
The Ministry of Lands and Natural Resources said the decision followed findings by the Minerals Commission that the company had breached Ghana’s mining laws and regulatory requirements in the course of its operations.
The statement comes after Adamus Resources rejected the government’s decision to uphold the revocation, describing it as unlawful and accusing Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah of disregarding procedures prescribed by law.
Adamus said it received the decision with “shock and disappointment”, denied the allegations against it and said it would appeal the revocation.
The ministry said the Minerals Commission established that Adamus had conducted mining activities outside its designated and permitted areas without obtaining the required Operating Permit from the Chief Inspector of Mines.
“This constitutes a breach of the applicable mining regulations, including Regulation 200(1)(b) of the Minerals and Mining (Health, Safety and Technical) Regulations,” the ministry said.
It added that the Commission had identified “significant regulatory and operational breaches” relating to the company’s mining activities.
The ministry said the breaches undermined the regulatory framework governing mining operations and stressed that companies holding mining rights were required to operate within the boundaries approved by the state.
The government also cited financial defaults as a basis for the action.
“The Commission also established that Adamus Resources Limited had outstanding financial obligations and defaults arising from its mining operations,” the statement said.
According to the ministry, holders of mining rights were required to comply not only with technical and environmental conditions attached to their leases but also with their statutory financial obligations to the state.
The ministry further said the Minister’s approval of the revocation was backed by Section 5(1) of the Minerals and Mining Act, 2006 (Act 703), acting on the recommendation of the Minerals Commission.
The government also rejected suggestions that the revocation was intended to pave the way for the sale of Adamus Resources or its mining assets.
“The Ministry wishes to state categorically that the revocation of the mining leases is not a decision to sell Adamus Resources Limited or its mining assets,” it said.
It said there was currently no government decision to sell the company or its assets, describing suggestions that the revocation was intended to facilitate such a sale as speculative.
“There is currently no Government decision to sell Adamus Resources Limited or its mining assets,” the ministry said.
The ministry maintained that the government’s action was based on “compliance, legality and protection of the public interest” and not on an intention to transfer the company’s assets to a preferred investor.
Source: www.kumasimail.com
