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Ghana’s Cabinet has approved wide-ranging amendments to the country’s mining legislation, paving the way for stronger regulatory oversight, increased local participation and tougher measures against illegal mining in Africa’s leading gold-producing nation.
Ghana has taken another step towards overhauling its mining sector after the Cabinet approved amendments to the country’s mining legislation for submission to Parliament, as the government intensifies efforts to improve governance, increase state revenues and combat illegal mining.
Announcing the decision on Wednesday, Minister for Lands and Natural Resources Emmanuel Armah-Kofi Buah said the proposed reforms would modernise Ghana’s mining framework and better position the sector to support sustainable economic development.
The Minerals and Mining Act of 2006, which has governed the industry for nearly two decades, is widely regarded as requiring significant revision to reflect current industry realities and evolving national development priorities.
Strengthening Local Content and Environmental Protection
According to the minister, the revised legislation seeks to deepen Ghanaian participation in the mining value chain by encouraging greater local ownership, expanding domestic mineral processing and strengthening links between mining and manufacturing.
The reforms also aim to tackle the country’s persistent challenge of illegal mining—commonly known as “galamsey”—which has caused widespread environmental degradation, including the pollution of rivers, destruction of forests and loss of agricultural land.
“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,” Buah said.
Greater Community Participation
One of the key provisions in the proposed legislation is the creation of District Mining Committees, which will give host communities a formal role in the mining licence approval process.
The government says the measure is intended to improve transparency, strengthen community engagement and ensure that local concerns are considered before mining projects receive regulatory approval.
Mining companies will also be required to negotiate Community Development Agreements directly with host communities, replacing the current system in which companies largely determine community support initiatives independently.
New Exploration Rules
The proposed law also introduces significant changes to mineral exploration licences.
Under the new framework:
- Existing reconnaissance and prospecting licences will be merged into a single exploration licence.
- Exploration permits will be limited to five years.
- Companies seeking extensions must demonstrate satisfactory progress against an initial two-year work programme.
Buah said the changes are designed to discourage speculative licence holders who acquire mining rights without carrying out meaningful exploration activities.
“If for five years you can’t act, we will take it from you,” the minister said.
Mining Leases Remain Unchanged
While exploration rules will become stricter, the maximum duration of mining leases will remain at 20 years under the proposed legislation.
However, mining companies will face stronger obligations to engage directly with communities throughout the life of their projects.
Broader Mining Sector Reforms
The legislative changes build on a series of reforms introduced by Ghana this year to maximise benefits from its mineral resources.
Earlier measures include:
- A sliding-scale royalty system linked to international gold prices;
- Plans to phase out fiscal stability agreements, which provide long-term tax certainty for mining companies; and
- Efforts to increase government revenues from the mining sector.
The proposed changes could have implications for several major international mining companies operating in Ghana, including Newmont, Gold Fields, AngloGold Ashanti, Zijin Mining and Perseus Mining.
Mining remains one of Ghana’s largest sources of export earnings, foreign investment and government revenue. By strengthening regulation, increasing community participation and promoting greater local value addition, the proposed reforms aim to ensure that the country’s mineral wealth delivers broader economic and social benefits. The tougher licensing provisions and enhanced oversight are also expected to support Ghana’s ongoing campaign against illegal mining while improving investor confidence through a more transparent and modern regulatory framework.
Source: Reuters
Reporting: Emmanuel Bruce.
Editing: Maxwell Akalaare Adombila and Louise Heavens.