The government has proposed reducing the maximum duration of mining leases from 30 years to 20 years as part of amendments to the Minerals and Mining Act, 2006 (Act 703).
The proposed changes, which Cabinet has approved, will be submitted to Parliament for consideration, according to the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah.
Speaking during the Government Accountability Series in Accra on Wednesday, July 15, the Minister said the review is intended to ensure Ghana derives greater benefits from its mineral resources.
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Under the current law, mining companies can be granted an initial lease of up to 30 years, with the option of renewing it for another 30 years.
However, the proposed amendment seeks to cap mining leases at 20 years.
The Minister also announced the introduction of mandatory Community Development Agreements, which will require mining companies to negotiate and agree on development projects directly with host communities.
“I’ve also limited the fixed period to 20 years, and we have introduced community development agreements,” he said.
According to Mr. Armah-Kofi Buah, the new provision is intended to address longstanding concerns by mining communities over inadequate development benefits.
“There are always communities that complain about developments. And so every mining lease will also have another additional community development agreement that has been signed between the mining company and the community,” he explained.
He said the new arrangement would replace the current practice where mining companies unilaterally determine the form of support they provide to communities.
“It’s no longer going to be the choice of a mining company who will decide, ‘I’ll give them some water.’ The community will negotiate in those mining agreements, with community agreements, their critical needs, and that will be agreed voluntarily by the mining company and the community,” he said.
Mr. Armah-Kofi Buah added that the proposed reforms are among several innovations captured in the new mining legislation aimed at strengthening governance and ensuring communities benefit more directly from mining activities.
Credit: Citi Newsroom