The government has suggested a reduction in the maximum length of mining leases from 30 years to 20 years as part of the amendments to the Minerals and Mining Act, 2006 (Act 703).
These proposed modifications, which have received Cabinet approval, will be presented to Parliament for review, as stated by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah.
During the Government Accountability Series held in Accra on Wednesday, July 15, the Minister indicated that the review aims to ensure that Ghana gains greater advantages from its mineral resources.
Currently, the law permits mining companies to obtain an initial lease of up to 30 years, with the possibility of extending it for an additional 30 years.
However, the proposed amendment aims to limit mining leases to a maximum of 20 years.
The Minister also revealed the introduction of mandatory Community Development Agreements, which will obligate mining companies to negotiate and establish development projects directly with the host communities.
“I have also restricted the fixed period to 20 years, and we have implemented community development agreements,” he stated.
According to Mr. Armah-Kofi Buah, this new provision is designed to address long-standing issues raised by mining communities regarding insufficient development benefits.
“There are always communities that express dissatisfaction about developments. Therefore, every mining lease will also include an additional community development agreement that has been established between the mining company and the community,” he clarified.
He mentioned that the new framework would replace the existing practice where mining companies independently decide the type of support they offer to communities.
“It will no longer be at the discretion of a mining company to determine, ‘I will provide them with some water.’ The community will negotiate within those mining agreements, through community agreements, their essential needs, and this will be mutually agreed upon by both the mining company and the community,” he concluded.
Mr. Armah-Kofi Buah stated that the suggested reforms are part of various innovations included in the new mining legislation, which seeks to enhance governance and ensure that communities receive greater direct benefits from mining operations.
