Ghana Government to cancel Exton bauxite lease at Nyinahini today

After abruptly cancelling a bauxite concession agreement with Exton Cubic, an indigenous mining firm for bauxite mining at Nyinahini, President Akufo-Addo’s Land and Natural Resources Minister, Mr John Peter Amewu is expected to announce government’s decision to cancel Exton Cubic’s Nyinahini mining lease today. Media reports indicated this development as final barring any last minute change of mind.

President Akufo-Addo who was irked by the recent press conference by the chiefs and people of Nyinahini has given strict orders to the Lands and Natural Resources Ministry on this matter. According to other sources President Akufo-Addo’s decision to cancel the mining lease to Exton Cubic was also influenced by government’s plans to leverage Ghana’s natural resources with Chinese investment.

According to a report from aL-hAJJ, Exton Cubic’s current operation in the Nyinahini bauxite concession is illegal because it had breached terms of its Agreement which was vehemently denied by Exton Cubic. This development, according to the media may lead to another long legal battle in the country’s mining sector.

Though some youth in Ashanti region are against the operations of the mining company, another section and the local chiefs of Nyinahini and its environs in the Atwima Mponua District of Ashanti Region have shown their support to the company. The company claims they were granted lease in 2015 with proper entry permit.

But the Ashanti regional Minister and other leading members of many local groups have filed a case at the Supreme Court to declare the transaction void and cancel the mining lease. Exton Cubic has served a notice that it would sue the state, arguing that it wrongfully interfered with its business rights in the Nyinahini Bauxite Concession. If the company decides to do so, it may lead to the country paying huge judgement compensation.