Angela List Revocation Row: Government Investigations Unfold

Government Upholds Revocation of Adamus Resources' Mining Leases

The government has upheld the revocation of Adamus Resources' mining leases covering the Akango, Salman and Nkroful concessions in the Western Region. The decision followed an earlier revocation in April and a subsequent review process after Adamus petitioned the Minister for Lands and Natural Resources.

Adamus Rejects Allegations, Plans to Challenge Decision

Adamus has rejected the allegations and announced its intention to challenge the decision, arguing that the process did not comply with the Minerals and Mining Act, 2006 (Act 703). The company cited alleged breaches including unauthorized arrangements involving portions of the concessions and other regulatory infractions.

Government Insists on Regulatory Compliance

Government, for its part, insists that the decision was based on regulatory compliance and the protection of the public interest. It has cited alleged breaches and unauthorised arrangements involving portions of the concessions and other regulatory infractions.

A Troubling Pattern of Adverse Actions

What makes the Adamus case particularly uncomfortable is the apparent accumulation of adverse actions around a Ghanaian entrepreneur who has built a significant presence in the mining industry. Angela List is not a newcomer to mining. Through Nguvu Mining, she has been associated with several mining interests across West Africa, and Adamus has operated in Ghana for years.

Concerns About Selective Enforcement

The concerns become even more serious when the Adamus controversy is considered alongside the reported difficulties surrounding Angela List's other mining interests, including Northern Ashanti. If significant capital was committed to rebuilding the Northern Ashanti operation, then government owes the public a particularly convincing explanation for any subsequent action that threatens that investment.

Government Must Be Careful

Government should never create the impression that an entrepreneur can invest enormous sums of private capital into a Ghanaian asset and later find herself exposed to decisions that effectively wipe out that investment without an exceptionally transparent and compelling process. Is this regulation or selective enforcement? This is perhaps the most important question.

Transparency is Key

The Ministry of Lands and Natural Resources has gone to considerable lengths to say that the Adamus assets are not being revoked to facilitate their sale to another investor. The Ministry stated on August 12 that there is currently no government decision to sell Adamus or its mining assets and described suggestions to the contrary as speculative. That clarification is welcome. But it also demonstrates why transparency is so important.

Government Should Reconsider Decision

The government may ultimately be right on the substance of the Adamus case. But being legally empowered to take an action does not necessarily mean that action is the wisest one. The state should ask whether revocation is genuinely in Ghana's best interest. Would a restructured arrangement protect the state's interests while preserving jobs and private investment? Could Adamus be subjected to tighter regulatory supervision? Could outstanding obligations be negotiated and recovered?

Source: JOY