Ghana Government Proposes Major Overhaul of Mining Laws, Cuts Mining Lease Term to 20 Years

by Mawuli
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The government has introduced a new Legislative Instrument (LI) in Parliament aimed at overhauling Ghana’s mining laws, improving mining regulation and increasing the participation of local communities in decisions concerning mineral resources.

Minister of Lands and Natural Resources Emmanuel Armah-Kofi Buah said the proposed reforms would reduce the maximum duration of mining leases from 30 years to 20 years, tighten regulations on exploration licences and decentralise the mining licensing process.

The Minister made the announcement when he commissioned a new GH¢12.3 million Minerals Commission office complex, as part of efforts to bring mining regulatory services closer to communities across Ghana.

According to him, the reforms are designed to promote responsible mining, strengthen environmental protection and ensure that communities affected by mining activities have a greater role in decisions involving their land and natural resources.

Mining Lease Period to Be Reduced

One of the key proposals under the new mining legislation is the reduction of the maximum mining lease period from 30 years to 20 years.

Mr Armah-Kofi Buah explained that the shorter lease period would allow the government and local communities to periodically review mining operations and determine whether mineral concessions should continue based on prevailing conditions.

He said the reform would also take into account technological developments in the mining industry and prevent mineral concessions from remaining inactive or locked up for decades.

“We need to completely overhaul our mining laws,” the Minister said, stressing the need for a more effective framework for managing Ghana’s mineral resources.

Government Targets Mining Licence Speculators

The proposed mining reforms will also introduce stricter measures against individuals and companies that acquire mining concessions for speculative purposes.

Under the new system, exploration licences could be limited to five years. Applicants would initially receive a two-year licence to demonstrate their ability to conduct exploration, with the possibility of a further three-year extension.

Mr Armah-Kofi Buah warned that companies that failed to identify viable mineral deposits within the approved period could lose their licences.

The measure is intended to prevent companies from holding mining concessions without conducting meaningful exploration, particularly where the main objective is to attract investors or sell interests in the concessions.

The Minister said speculative practices had left large areas of Ghana under mining concessions without generating the expected economic benefits.

District Mining Committees to Be Established

Another major component of the proposed mining law reforms is the establishment of District Mining Committees.

The committees would include traditional leaders, community representatives, Assembly Members and officials from relevant government institutions.

Under the proposed decentralised system, mining applicants would be required to engage district-level authorities before their applications are forwarded to the Minerals Commission.

The committees would inspect proposed mining locations and assess whether the areas contain cocoa farms, water bodies, settlements, environmentally sensitive zones or other important community assets.

Recommendations from the district structures would then be submitted to the Minerals Commission for further consideration.

The Minister described the initiative as a bottom-up approach to mining governance, saying it would give mining communities a stronger voice in decisions that affect their livelihoods, land and environment.

Minerals Commission to Gain More Local Authority

Mr Armah-Kofi Buah said the decentralisation programme would strengthen the capacity of the Minerals Commission to regulate mining activities at the local level.

He argued that maintaining key mining regulatory services at the Commission’s headquarters in Accra was no longer sustainable.

According to him, communities and mining companies should not be forced to travel to Accra to access basic regulatory services when Minerals Commission offices already exist in mining areas.

The Minister said the new office complex was therefore not simply an infrastructure project but part of a broader effort to empower local Minerals Commission offices with greater authority and resources.

Lands Commission Services Also Being Decentralised

The government is also pursuing a similar decentralisation programme at the Lands Commission.

Mr Armah-Kofi Buah disclosed that more than 32 new district Lands Commission offices had been established over the past year to bring land registration and other land-related services closer to citizens.

He also announced an ongoing digitalisation programme intended to allow people to access land services remotely while reducing delays associated with land registration and the acquisition of land titles.

The Minister acknowledged concerns over delays in obtaining land documents, noting that he had personally experienced a lengthy wait for the title to his house.

Government Promises More Jobs for Mining Communities

Beyond decentralising mining services, the government wants Minerals Commission offices in mining areas to create employment opportunities for qualified young people within local communities.

Mr Armah-Kofi Buah said he had instructed the Commission to prioritise qualified residents when recruiting staff for the new offices.

He also called on mining companies to increase local employment and work more closely with communities hosting mining operations.

The Minister urged companies not to use lack of qualifications as an excuse for excluding local residents from employment opportunities, stressing the need to invest in skills development.

New Direction for Ghana’s Mining Sector

The proposed mining law reforms are expected to reshape the way mining licences, mineral concessions and exploration activities are managed in Ghana.

The government says the new approach will place greater emphasis on decentralisation, community participation, environmental protection, responsible mining and stronger regulatory oversight.

Mr Armah-Kofi Buah described the reforms as a “new dawn” for Ghana’s mining sector and reaffirmed the government’s commitment to ensuring that the country’s mineral wealth delivers tangible benefits to Ghanaians.

The reforms are also expected to support more efficient mining regulation while protecting Ghana’s land, water bodies, forests and other natural resources for future generations.

Source: newsthemegh.com

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