The Ghana Chamber of Mines is opposing proposed changes to Ghana's Minerals and Mining Act, 2006 (Act 703), warning that they could harm the sector's competitiveness and investment attractiveness.
Specifically, the Chamber is concerned about reducing prospecting license tenure to 9 years and abolishing Development Agreements.
According to Dr. Ign. Kenneth Ashigbey, CEO of the Ghana Chamber of Mines, a shorter prospecting license tenure would have severe consequences.
A shorter prospecting license tenure would limit the time investors have to make commercial discoveries and hinder the country's ability to fully explore its mineral potential," he explained.
According to the Minerals Commission of Ghana, as part of revising Ghana's mining laws, prospecting licenses will now be capped at 9 years, ending indefinite renewals. Companies must prove commercially viable deposits within the timeframe or relinquish concessions. This reform aims to end "land banking," where companies hold onto concessions for speculative purposes, and promote transparency, efficiency, and competitiveness.
Again, speaking at the Government Accountability Series held at the Jubilee House in July this year, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, revealed that the review of the Minerals and Mining Act, 2006 (Act 703), and the 2014 Minerals and Mining Policy, is now 85% complete.
Armah-Kofi Buah described the mining sector as “the lifeline for millions of Ghanaians,” noting that the country’s rich deposits of gold, diamonds, bauxite, iron, salt, and other minerals must be managed to benefit all citizens, especially communities that directly experience the impact of mining activities.
Our natural resources are under unprecedented strain due to rapid population growth, urbanization, and climate change. To fully harness the benefits of our mineral wealth, we must strengthen our laws to ensure equity, sustainability, and shared prosperity,” he stated.
But the Chamber of Mines believes "This could have serious consequences for the sector's long-term sustainability and competitiveness."
The Chamber has therefore recommended maintaining the existing tenure system, tying renewals to verifiable evidence of work undertaken, and retaining Development Agreements as a tool for attracting large-scale investments. The Chamber is of the view that, this approach would maintain flexibility and allow the government to use these agreements at its discretion.
The Chamber's warnings highlight the potential risks of the proposed changes, emphasizing the need for careful consideration to ensure the long-term sustainability and competitiveness of Ghana's mining sector. The Chamber is urging the government to adopt a more nuanced approach, balancing investor needs with the country's development goals.
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