Cabinet has approved proposed amendments to the Minerals and Mining Act, 2006 (Act 703), including a provision to reduce the maximum duration of mining leases from 30 years to 20 years.
The revised Bill, which has been endorsed by Cabinet, will now be submitted to Parliament for consideration and approval.
Announcing the reforms at the Government Accountability Series in Accra, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, said the proposed amendments form part of the government’s broader efforts to strengthen governance in the mining sector and ensure host communities derive greater benefits from mineral resources.
Under the current law, mining companies may be granted an initial lease of up to 30 years, with the option of renewing it for another 30 years.
The proposed amendment, however, seeks to cap mining leases at 20 years.
“We’ve also limited the lease period to 20 years, and we have introduced Community Development Agreements,” Mr Armah-Kofi Buah announced.
“Following stakeholder consultations, the Minerals and Mining Act, 2006 (Act 703) which has been operational for 20 years was also reviewed and endorsed by Cabinet for onward transmission to Parliament for approval. The revised Bill provides an updated, coherent and 5 forward-looking legal regime to ensure that mining contributes immensely to national development.” ”
“The new Act introduces district mining committees as a starting point for mineral licensing, medium scale mining as a new category, removes reconnaissance and prospecting license and replaces it with Exploration fixed at 5 years maximum. Mining lease period is now fixed at 20 years maximum and we have introduced community development agreement as part of any mining lease.”
The Minister also disclosed that the revised Bill abolishes reconnaissance and prospecting licences, replacing them with exploration licences that will have a maximum duration of five years.
Another key reform is the introduction of mandatory Community Development Agreements, which will require mining companies to negotiate development priorities directly with host communities before mining leases are granted.
According to the Minister, the measure is intended to address longstanding complaints by communities that they have not adequately benefited from mining activities.
“There are always communities that complain about development. Every mining lease will now have an additional Community Development Agreement signed between the mining company and the community,” he said.
Mr Armah-Kofi Buah explained that the new arrangement would end the practice where mining companies unilaterally determine the type of support they provide to communities.
“It is no longer going to be the choice of a mining company to decide, ‘I will give them some water.’ The community will negotiate its critical development needs with the mining company, and both parties will agree on those priorities,” he said.
He said the proposed amendments are among several reforms contained in the revised mining legislation aimed at promoting responsible mining, improving accountability and ensuring communities benefit more directly from Ghana’s mineral wealth.
