ACCRA, July 16 – Ghana’s cabinet has approved proposed amendments to the country’s mining legislation for submission to Parliament, as the government moves to strengthen oversight of the mining sector, increase local participation and intensify efforts to combat illegal mining.
Announcing the decision on Wednesday, Minister for Lands and Natural Resources Emmanuel Armah-Kofi Buah said the reforms are designed to modernise Ghana’s Minerals and Mining Act, 2006, which has governed the sector for nearly two decades.
As Africa’s largest gold producer, Ghana has been pursuing a series of policy reforms aimed at increasing government revenue from mining while ensuring that more of the country’s mineral wealth benefits local communities and industries.
Earlier this year, the government introduced a sliding-scale gold royalty regime linked to international gold prices and signalled plans to phase out fiscal stability agreements, a move that could affect major mining companies operating in the country, including Newmont, Gold Fields, AngloGold Ashanti, Zijin Mining and Perseus Mining.
Speaking at a news conference in Accra, Buah said the proposed legislation would establish a more modern and forward-looking legal framework for Ghana’s mining industry.
According to the minister, “This policy seeks to indigenise mining by strengthening local content through domestic value addition to minerals, improve linkages to the manufacturing industry, and deal decisively with the menace of illegal mining and the protection of our environment.”
Among the proposed changes is the creation of district mining committees, which will give host communities an earlier role in the mining licence approval process.
The reforms would also replace the current reconnaissance and prospecting licences with a single exploration licence valid for up to five years. Any extension would depend on a review of the company’s initial two-year exploration programme.
Explaining the rationale behind the proposal, Buah said, “If for five years you can’t act, we will take it from you,” adding that the measure is intended to prevent speculative licence holders from retaining mining rights without undertaking exploration activities.
Mining leases would continue to have a maximum duration of 20 years, but companies would also be required to negotiate community development agreements directly with host communities rather than determining such arrangements unilaterally.
The proposed reforms form part of Ghana’s broader strategy to improve governance in the mining sector, encourage responsible resource development and ensure that local communities benefit more directly from the country’s mineral resources
