The Sekondi High Court has ruled that Akonta Mining Company Limited committed civil trespass by operating in Samreboi without proper parliamentary ratification and environmental permits. This judgment, delivered on May 19, 2023, found that leases signed by the Minister for Lands and Natural Resources do not grant immediate rights to occupy land or conduct mining operations.
The court's decision highlights that parliamentary ratification under Article 268(1) of the 1992 Constitution is mandatory. Additionally, environmental permits from the Environmental Protection Agency (EPA) and Forestry Commission, as per Section 18(1) of the Minerals and Mining Act, 2006 (Act 703), are essential. Without these, any entry onto private or stool-leased land constitutes actionable civil trespass, rendering the leases legally invalid.
This ruling is a significant development in Ghana's natural resource sector, emphasizing the strict legal framework governing mining activities. It underscores the importance of adhering to constitutional and statutory provisions, even when executive agreements are in place. The case involves Akonta Mining, led by Bernard Antwi Boasiako, also known as Chairman Wontumi, and Samartex Timber & Plywood Company Ltd.
Samartex, a timber manufacturing company, holds a 50-year registered deed of lease dating from January 1, 2012, over 1,112.55 acres granted by the Asankragwa Agona Royal Stool. Samartex has established extensive infrastructure on this land, including sawmills, worker bungalows, and a licensed private airstrip. Akonta Mining re-entered Samreboi, relying on two new mining lease agreements executed with the Government of Ghana on July 23, 2021.
Upon entering Samartex's leased land, Akonta Mining excavated portions of the earth and set up a gold washing plant. They also mounted barricades across private roads built by Samartex and deployed security guards within the 200-meter safety buffer zone of Samartex's airstrip. These actions severely disrupted local utility lines and led Samartex to sue for declaration of title, recovery of possession, and general damages for civil trespass.
Akonta Mining denied trespass, filing a counterclaim asserting superior mining rights based on its government leases. However, the court affirmed that mineral ownership is vested in the Republic of Ghana, as per Article 257(6) of the 1992 Constitution. It clarified that an executive signature alone cannot grant exploitation rights without parliamentary ratification, a principle reaffirmed in previous cases like Exton Cubic Group Limited.
This judgment serves as a crucial reminder for all mining companies operating in Ghana. It reinforces that unratified leases do not confer absolute rights and that pre-existing surface rights must be respected. The decision will likely influence future investment decisions and regulatory enforcement within the mining sector, ensuring greater adherence to legal and environmental standards.
Stakeholders, including investors and local communities, will closely monitor how this ruling impacts Akonta Mining's operations and the broader enforcement of mining laws. This case highlights the judiciary's role in upholding the rule of law in Ghana's vital natural resource industries.