Ghana’s Minerals Commission held its ninth phase of Stakeholders engagement on the review of the 2014 mining policy and proposed amendments following the sector Ministry and the Commission’s proposal of a comprehensive overhaul of the Minerals and Mining Act, 2006 (Act 703), as part of its reforms and advocating for significant state investment in geological surveys.
The dual-pronged approach, presented by the outgoing Chief Executive Officer, Martin Kwaku Ayisi, aims to enhance transparency, curb illegal mining, and align the nation’s legal and operational frameworks with international best practices.
Mr. Ayisi’s proposals for amending Act 703 are designed to modernize Ghana’s mining regime and increase its benefits to the state and local communities.
Key recommendations include:
Accelerated Parliamentary Ratification: A new provision to mandate the submission of mining leases to Parliament for ratification within 60 days of their grant. This measure is intended to eliminate delays that hinder companies’ ability to secure financing.
Enhanced Transparency: The Commission would be required to make all mineral rights, agreements, annual revenues, and production volumes publicly accessible on its website. This move aligns with the Extractive Industries Transparency Initiative (EITI) and follows the lead of other African nations.
Strengthening Local Participation: A new Community Development Agreement (CDA) would become mandatory for mining leaseholders, formalizing a currently voluntary practice and ensuring community benefits. Provisions would also be added to mainstream gender in the industry and establish a national database of Ghanaian mining professionals to reduce reliance on expatriates.
Modernizing Licensing and Operations: The proposal calls for a reduction of the maximum mining lease term from 30 to 15 years and caps prospecting license renewals at a total of nine years. It also recommends abolishing Development Agreements (DAs), which are considered outdated and poorly negotiated, and reducing the stability period for fiscal regimes to a maximum of five years.
Addressing Illegal Mining: The proposal seeks to ban the use of mercury in mining, in line with the Minamata Convention. It also suggests introducing a formal medium-scale mining license to regulate operations that fall between small- and large-scale mining.
Strategic Investment in Geological Surveys
In a separate but related briefing for journalists, Kwaku Ayisi highlighted a critical need for the government to make a substantial investment in the Geological Survey. This strategic move, he reveals, aims to combat the persistent menace of illegal mining, locally known as galamsey.
He explained that a robust, data-driven approach is essential to tackling the problem. By investing in state-of-the-art equipment and training specialized geologists, the government can pinpoint the exact locations of gold deposits. This precise information would prevent illegal miners from the haphazard digging that has caused widespread environmental devastation, including the destruction of forest cover and pollution of water bodies.
While acknowledging that such an investment would be financially intensive, the CEO argued it is a necessary long-term solution. “Though this might be a financially intensive investment, it holds the potential to effectively address the menace of illegal mining,” he stated.
According to him, this strategic pivot towards a scientific, data-driven approach is a significant step in bringing greater order and sustainability to Ghana’s mining sector, complementing the proposed legislative reforms.
Themes Of The Reforms
1. The Indigenization of the Sector: A major driver behind the reforms is the government’s stated goal to increase local participation and ensure that a greater share of the mining wealth benefits Ghanaians. This is often referred to as “indigenization.”
Increase Ghanaian employment and skills: By creating a database of local talent, the government wants to reduce the reliance on foreign expatriates and promote technology transfer.
Empower communities: The mandatory Community Development Agreements (CDAs) are a direct response to longstanding grievances from mining communities who have felt they have not adequately benefited from the mineral wealth extracted from their lands. This represents a significant shift from the previous, less-structured corporate social responsibility initiatives.
2. Tightening Regulations and Stricter Enforcement: The reforms aim to introduce a more robust and enforceable regulatory environment. This includes:
Shorter License Durations: The move to reduce the maximum term for mining leases from 30 years to a shorter, government-negotiated period is a key change. It gives the government more leverage and the ability to review contracts more frequently.
Abolishing Outdated Agreements: The strong push to abolish Development Agreements and stability clauses is a direct challenge to a system that many in government and civil society have long criticized as being overly favorable to foreign companies. The argument is that these agreements lock Ghana into unfavorable fiscal terms and prevent the country from benefiting from rising commodity prices.
Increased Penalties: There’s a strong push to increase fines and penalties for non-compliance, particularly for illegal mining activities.
3. Addressing Illegal Mining (Galamsey): This remains a top priority for the government. The proposed investment in geological surveys is a novel approach to tackling the problem at its root. By providing clear data on where minerals are located, the government can:
Create designated mining zones: This would allow for better management and monitoring of small-scale mining activities, making it easier to formalize the sector and weed out illegal operations.
Minimize environmental damage: By preventing haphazard digging, the government hopes to protect vital natural resources like forests and water bodies.
4. Public and Stakeholder Consultation: The government has been holding a series of engagements with various stakeholders, including traditional leaders, civil society organizations, and industry players. This consultative process is crucial to the legitimacy and eventual success of the reforms. Notably, the Minerals Commission has pledged to consult with traditional leaders before granting licenses, a major policy shift aimed at reducing community tensions and increasing local oversight.
5. The Ghana Gold Board Act, 2025 (Act 1140): This is a significant development, as it centralizes the sale of minerals, particularly gold, and gives the state more control over the sector’s revenue. The repeal of sections of the Minerals and Mining Act related to the export and sale of minerals indicates a major shift in the state’s role, from a regulator to a direct participant in the gold trade. This is intended to help the Bank of Ghana shore up its foreign reserves and stabilize the local currency.
The current reforms are a multi-faceted effort to gain greater control, transparency, and value from Ghana’s mining sector. They represent a departure from previous, more investor-centric policies and a strategic move to prioritize national interests and community benefits.
Story By:Eugenia Ewoenam Osei
