“Minister does not have unfettered discretion to revoke mining leases” — lawyer Kobby Amoah

“Minister does not have unfettered discretion to revoke mining leases” — lawyer Kobby Amoah

Lawyer Kobby Amoah has described the government’s revocation of the mining lease of Adamus Resources as procedurally flawed, saying the company could challenge the decision in court if it was not given an opportunity to respond to the allegations against it. Amoah said the Minister for Lands and Natural Resources has l...

Winifred Lartey
Aug 12
“Minister does not have unfettered discretion to revoke mining leases” — lawyer Kobby Amoah

Lawyer Kobby Amoah has described the government’s revocation of the mining lease of Adamus Resources as procedurally flawed, saying the company could challenge the decision in court if it was not given an opportunity to respond to the allegations against it.

Amoah said the Minister for Lands and Natural Resources has legal authority to revoke mining licences but must exercise that power in accordance with safeguards provided under Ghana’s mining laws.

“The minister does not have that unfettered discretion to do whatever they want,” Amoah said on the Asaase Breakfast Show on Wednesday (12 August).

He cited provisions of Ghana’s mining legislation, including Section 68, which he said sets out the circumstances and procedures under which mineral rights may be revoked.

According to him, the principle of natural justice also requires that a company facing regulatory action be informed of the allegations against it and given an opportunity to respond before a decision is taken.

Amoah said the company should then be given the period prescribed by law to remedy any breaches identified by the regulator before revocation is considered.

He argued that the process followed in Adamus’s case did not satisfy those requirements.

“Many allegations are not enough,” he said. “Those allegations have to go through the test of the procedure that has been set by law.”

The government has cited several alleged breaches in its action against Adamus, including the assignment of mineral rights to foreign nationals without ministerial approval, mining outside approved areas and environmental and forestry violations.

It has also cited outstanding mineral rights fees, royalties and tax liabilities.

Amoah said the seriousness of the allegations did not remove the government’s obligation to follow due process.

“If indeed the minister actually believes and you have evidence, it’s really something you could pursue,” he said. “However, you should afford the people involved the opportunity to respond.”

He said financial obligations owed by a mining company could also be pursued through the legal mechanisms available to the state and did not automatically justify revocation without following the prescribed procedure.

Amoah also questioned whether the establishment of an inter-ministerial review committee was sufficient to satisfy the requirements of procedural fairness.

He said the existence of such a committee did not, by itself, resolve questions about whether Adamus had been properly notified, heard and given an opportunity to remedy any identified breaches.

“The fact that there could even be an infraction alone does not necessarily warrant revocation,” he said.

Amoah said if he were advising Adamus, he would recommend that the company challenge the process through the courts.

“If I were to be involved in the matter, I would advise Adamus to challenge the processes,” he said, arguing that the decision could be subject to judicial review.

He maintained that the issue was not whether the government had regulatory powers over mining companies, but whether those powers had been exercised according to law.

“The process is regulated by law,” he said. “We have to look at the processes.”

The lawyer’s comments come amid debate over the government’s decision to revoke Adamus Resources’ mining lease and the implications of the move for regulation and local participation in Ghana’s mining sector.

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