Government is seeking to reduce the maximum duration of mining leases in Ghana from 30 years to 20 years under proposed amendments to the Minerals and Mining Act, 2006 (Act 703), following Cabinet’s approval of a revised Bill.
The Bill, which will now be laid before Parliament for consideration and approval, forms part of a broader package of reforms aimed at strengthening regulation of the mining sector, improving accountability and ensuring host communities benefit more directly from mining activities.
Speaking at the Government Accountability Series in Accra, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, said the review follows extensive stakeholder consultations after two decades of implementing the current law.
He explained that the proposed legislation introduces an updated legal framework designed to promote responsible mining while enhancing the sector’s contribution to national development.
“Following stakeholder consultations, the Minerals and Mining Act, 2006 (Act 703), which has been operational for 20 years, was reviewed and endorsed by Cabinet for onward transmission to Parliament for approval. The revised Bill provides an updated, coherent and forward-looking legal regime to ensure that mining contributes immensely to national development,” he said.
Under the proposed amendments, mining leases will no longer exceed 20 years, replacing the current arrangement that allows companies to hold an initial lease of up to 30 years with the option of renewal.
The Minister said the revised Bill also establishes district mining committees as the entry point for mineral licensing and introduces medium-scale mining as a new category within the industry.
In addition, reconnaissance and prospecting licences will be abolished and replaced with exploration licences with a maximum validity period of five years.
Another major reform is the introduction of mandatory Community Development Agreements, which will require mining companies to negotiate and agree on development priorities with host communities before mining leases are granted.
Mr Armah-Kofi Buah said the provision is intended to address longstanding concerns that communities hosting mining operations have not received adequate benefits from the exploitation of mineral resources.
“There are always communities that complain about development. Every mining lease will now have an additional Community Development Agreement signed between the mining company and the community,” he said.
He explained that the new system would allow communities to determine their own development priorities through negotiations with mining companies instead of relying on projects selected solely by the companies.
“It is no longer going to be the choice of a mining company to decide, ‘I will give them some water.’ The community will negotiate its critical development needs with the mining company, and both parties will agree on those priorities,” he stated.
The Minister said the proposed reforms are expected to promote responsible mining practices, improve governance in the extractive sector and ensure Ghana’s mineral resources deliver greater socio-economic benefits to both the state and host communities.
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