ACCRA, July 16 – Ghana has approved amendments to the country’s mining law and forwarded them to parliament as the government steps up efforts to strengthen oversight of the mining industry and tackle illegal mining.
The proposed changes are part of wider reforms aimed at increasing government revenue from the sector while giving local communities a bigger role in the country’s mineral industry.
According to Mines Minister Emmanuel Armah-Kofi Buah, the current Minerals and Mining Act, introduced in 2006, needs to be updated to better reflect the industry’s current needs and future direction. Under the proposed law, district mining committees will be created to involve host communities earlier in the mining licence approval process.
The government also plans to replace separate reconnaissance and prospecting licences with a single exploration licence that will last for up to five years. Any extension will depend on a review of the company’s first two-year work programme.
Buah said the change is aimed at preventing companies from holding exploration licences without carrying out mining activities.
Mining leases will remain valid for up to 20 years. However, companies will now be required to sign separate community development agreements negotiated directly with host communities instead of deciding the terms on their own.
Ghana has already introduced a sliding-scale royalty system linked to gold prices and has indicated plans to phase out fiscal stability agreements. The changes could affect major mining companies, including Newmont, Gold Fields, AngloGold Ashanti, Zijin and Perseus.
