Northern Ashanti Mines: Former Minerals Commission official urges negotiation over debt

A former Chief Inspector of Mines with the Minerals Commission, Obiri Yeboah Twumasi, has urged the Commission to negotiate a payment plan with Northern Ashanti Mines over its alleged outstanding statutory fees rather than allow the dispute to escalate.

He says a negotiated settlement could help the company meet its financial obligations while continuing to develop its mine, particularly as it is yet to begin production and generate revenue from gold sales.

Speaking on*** Joy FM’s Top Story***, Mr Twumasi said that where the alleged breaches relate to statutory payments, the Commission and the company should consider an arrangement that allows the outstanding amounts to be paid over an agreed period.

“But if the current breaches are to do with statutory payments, I think they can sit down and resolve it and a payment plan established by the company to the acceptance of the Minerals Commission for them to pay,” he said.

Mr Twumasi explained that a mining company still constructing its processing plant and investing in equipment may not have sufficient cash flow to meet its financial obligations, leaving it dependent on suppliers and creditors to sustain its operations.

He said the Minerals Commission should therefore exercise caution in handling the matter, while the company must also be mindful of its obligations.

His comments come amid a dispute over the revocation of Northern Ashanti Mines’ licence, with the Minerals Commission reportedly claiming that the company owes more than US$8.38 million in statutory fees.

Mr Twumasi also stressed that the Commission must follow the prescribed procedures when dealing with alleged breaches by mining companies.

He said the Commission should notify a company of any serious breaches and give it 120 days to remedy them. If the issues remain unresolved, he said, a further 120-day period should be granted.

“The Minerals Commission should notify the company, give them 120 days in the first instance for them to remedy any breaches that probably they might have notified them. If after the 120 days, a second window is open for the company, another 120 days is given to the company for them to remedy any breaches,” he said.

Mr Twumasi called on both parties to resolve their differences through dialogue, arguing that a prolonged dispute would not serve the interests of the country.

“What we need to do is for two sides to sit down and negotiate whatever differences that they have. So that at the end of the day, the benefit will inure to the whole country,” he added.

Also read:

• Mahama must intervene; Northern Ashanti Mines takeover undemocratic – Former Obuasi East MP

• Northern Ashanti Mines rejects Minerals Commission’s $8.3m debt claim in lease revocation