Amended mining law to peg maximum tenure of lease at 15 years

Ghana’s mining industry is set for sweeping legal reforms as the government prepares to cut the maximum tenure of mining leases from 30 years to 15 years, the Chief Executive Officer of the Minerals Commission, Martin Ayisi, has announced.

Speaking at a roundtable organized by the Institute of Economic Affairs (IEA) in Accra, Mr. Ayisi said the change was necessary to align Ghana’s laws with international standards and to strengthen local ownership in the sector.

Countries such as Kenya, Burkina Faso, Côte d’Ivoire and Mali currently grant leases between 15 and 25 years.

New Mining Policy by End of 2025

The Minerals Commission is completing consultations with stakeholders including traditional authorities, the Ghana Chamber of Mines, the Forestry Commission, civil society organisations, and regional houses of chiefs.

Mr. Ayisi revealed that by September 2025, a draft of the new mining policy would be submitted to the Lands and Natural Resources Minister for Cabinet consideration, with the goal of securing both a revised policy and law before the year ends.

Proposed Key Reforms

The upcoming amendments to the Minerals and Mining Act, 2006 (Act 703)—untouched for nearly two decades—introduce several major changes:

Prospecting licences capped at three years, renewable only twice, making a maximum of nine years.

Community Development Agreements (CDAs) to become compulsory within six months of a lease being granted, ensuring mining firms formally invest in affected communities.

Stability clauses reduced from 15 years to a maximum of five years, reflecting typical investment recovery periods.

Development agreements were abolished, with Mr. Ayisi arguing that such arrangements no longer suit Ghana’s mature mining sector.

He explained that voluntary corporate social responsibility (CSR) initiatives have been problematic since companies often classify them as operational costs, reducing taxable income. The CDA requirement will therefore formalise community benefits while ensuring fairness.

Mining has been central to Ghana’s economy since 1897. The country currently hosts 13 large-scale mining companies, with the government automatically holding a 10% stake in each.

Despite the 2014 Minerals and Mining Policy mandating a five-year review cycle, no update has been carried out until now. The proposed reforms aim to correct longstanding gaps, curb abuses, and maximise benefits for Ghanaians.