The Ghana Chamber of Mines has opposed strongly against government proposal to reduce the tenure of mining leases from 30 years to 15 years, warning that the move could undermine investor confidence and threaten the long-term sustainability of the country’s mining industry.
The President of the Chamber, Mr Michael Edem Akafia, described the proposal as untenable and inconsistent with global mining practices, stressing that Ghana risked losing its competitiveness to leading mining jurisdictions if the changes were implemented.
Speaking during a training session organised under the Africa Extractives Media Fellowship, Mr Akafia said the existing 30-year lease regime provided security of tenure, which was critical for attracting long-term capital investment and enabling companies to undertake extensive exploration and infrastructure development.
He explained that the amendment proposal sought to reduce the duration of mining leases to 15 years, renewable once for 10 years, a framework he said compared unfavourably with regulatory systems in countries such as Canada and Australia, where longer lease periods are standard practice.
Mr Akafia also criticised proposals to abolish Development Agreements and shorten the duration of Stability Agreements, arguing that both instruments play vital roles in safeguarding investments in the extractive sector, where projects require substantial financial outlays and extended gestation periods.
According to him, Stability Agreements were introduced to provide policy clarity and regulatory certainty for investors, ensuring that the assumptions underpinning projects remain stable throughout their operational life cycles and enabling companies to plan effectively and manage risks associated with volatile market and policy environments.
On Development Agreements, he acknowledged concerns about possible abuse but maintained that there was no evidence of any entity being sanctioned for misuse, insisting that strengthening oversight mechanisms would be more appropriate than eliminating the agreements entirely.
Mr Akafia further proposed that government align incentives under Development Agreements with provisions in the recently enacted Exemptions Act, which he said already established a structured and transparent framework for granting investment incentives without discriminatory application.
He emphasised that Ghana’s mining sector remained a major contributor to national revenue, employment and foreign exchange earnings, and cautioned that policy uncertainty could slow new investments and expansion projects at a time when the country was seeking to maximise value from its mineral resources.
He urged policymakers to engage industry players extensively before finalising amendments to the Minerals and Mining Act to ensure that reforms strengthen governance while preserving Ghana’s attractiveness as a preferred destination for responsible mining investment.
The Chamber reaffirmed its readiness to collaborate with government and other stakeholders to promote sustainable mineral resource development that balances national interests with investor confidence and long-term economic growth for Ghana’s future prosperity agenda.
BY TIMES REPORTER
