Ghana’s cabinet has approved proposed amendments to the country’s mining legislation for submission to parliament, as the government seeks tighter regulation of the sector, greater local participation and stronger action against illegal mining.
Mines Minister Emmanuel Armah-Kofi Buah announced the development on Wednesday at a news conference in Accra. Ghana, Africa’s largest gold producer, has recently introduced reforms intended to increase state revenue from mineral resources and ensure that more economic value remains within the country.
Earlier this year, the government introduced a sliding-scale royalty system linked to gold prices. It has also indicated that fiscal stability agreements may gradually be discontinued, potentially affecting major mining companies operating in Ghana, including Newmont, Gold Fields, AngloGold Ashanti, Zijin Mining and Perseus Mining.
Buah said the Minerals and Mining Act, which has governed the sector since 2006, requires significant revision after nearly 20 years in operation. The proposed changes are intended to create a more modern, consistent and future-focused legal framework.
“This policy seeks to indigenize mining by strengthening local content through domestic value addition to minerals, improve linkages to manufacturing industry, and deal decisively with the menace of illegal mining and the protection of our environment,” Buah said.
Under the proposed law, district mining committees would be established to give communities hosting mining activities an earlier role in the licensing process.
The reforms would also replace separate reconnaissance and prospecting licences with a single exploration licence, valid for a maximum of five years. Extensions would depend on a review of the company’s initial two-year exploration programme.
“If for five years you can’t act, we will take it from you”, Buah said, explaining that the provision is aimed at licence holders who retain mining rights without making meaningful investments in exploration.
Mining leases would remain limited to 20 years. However, companies would be required to negotiate separate community development agreements directly with affected communities, rather than determining community benefits independently.