Ghana's Lands and Natural Resources Minister, Emmanuel Armah-Kofi Buah, has outlined key reforms in the Minerals and Mining Bill, 2026, which aims to increase transparency and community engagement in the mining sector. The bill, laid in Parliament in May, will establish District Mining Committees to prevent miners from arriving in communities with licences without the knowledge of local chiefs. This move seeks to address concerns about the lack of communication and benefits for local communities.
The Minerals and Mining Bill, 2026, has not yet been passed by Parliament and is expected to be replaced with a revised version. The revised bill will restore a 20-year cap on mining leases, replacing the current 15-year cap or the expected life of the mine, whichever ends first. This change aims to provide more clarity and stability for mining companies operating in Ghana.
One of the key changes under the new Mining Act is the introduction of Community Development Agreements, which will become mandatory as part of the mining lease. These agreements will require mining companies and host communities to collaborate on development projects. Additionally, mining companies will be required to train local people, ensuring that communities benefit from mining activities and have the skills needed for jobs at the mine.
The new mining law also targets licence holders who keep large parcels of land idle for years while searching for investors. The bill proposes to scrap reconnaissance licences and introduce exploration licences that will run for two years with conditions, extendable to five years. If no gold is found, the land will be returned to the community for farming, promoting more efficient use of land and resources.
Ghana has already implemented a sliding-scale mining royalty system, which has increased royalty receipts to GH¢7.82 billion between January and September. The new royalty system, introduced under the Minerals and Mining Royalty Regulations, 2025, replaces the flat royalty rate with a rate that rises and falls with mineral prices, ensuring that the government receives a fair share of revenue from mining activities.
The revised bill also tightens the state's control over mining operations. Companies that fail to issue the Republic a free special share within two months could face fines of up to the cedi equivalent of US$150,000. The bill also allows the government to order local processing of minerals and impose restrictions on exports of raw concentrates, promoting value addition and reducing the export of unprocessed minerals.
The revised bill will need to go through Parliament's committee and plenary stages before it becomes law. The Ghana Chamber of Mines had previously expressed concerns about shorter lease terms, and it remains to be seen how the revised bill will address these concerns. Until the new law is passed, the current Minerals and Mining Act, 2006 (Act 703) will continue to govern the mining sector.
Key points
- The new mining law will establish District Mining Committees to ensure miners engage with local communities and chiefs before obtaining licences.
- The revised bill will restore a 20-year cap on mining leases and introduce Community Development Agreements as part of the mining lease.
- The new royalty system has increased royalty receipts to GH¢7.82 billion between January and September.
