The Livelihood and Environment Ghana (LEG), a research and advocacy non-governmental organisation (NGO), has proposed a series of amendments to the Minerals and Mining Act to address contradictions, clarify definitions, and ensure fairness and sanity in Ghana’s extractive sector.
In a statement outlining its proposed changes and copied to the Ghana News Agency, the NGO noted inconsistencies between Section 17(1) of Act 703 (2006) and Section 99(6) of the Minerals and Mining (Amendment) Act, 995 (2015).
It recommended that the two provisions be either abrogated or harmonised to avoid confusion in interpretation.
On royalties (Section 25), the organisation urged the government to peg rates between a minimum of five per cent and a maximum of 10 per cent of total mineral revenue.
“It is not safe and best practice to leave the royalty rate to be determined solely by the Minister or any other entity as and when the need arises,” the statement explained.
With respect to the transfer of earnings abroad (Section 29(d)), LEG suggested introducing a minimum payment system for expatriate personnel.
Drawing lessons from Sierra Leone, it proposed security or exit fees on money transfers to encourage savings in Ghanaian banks, strengthen the local financial sector, and ease pressure on the cedi.
The NGO also called for clear definitions of “suitable alternative land,” “economic well-being,” and “socio-cultural values” (Section 73(4)).
It proposed that resettled persons should have access to fertile land, adequate livelihoods, schools, health facilities, and proper housing with minimum standards such as a living room, bedroom, bathroom, kitchen, and surrounding compound.
On compensation (Section 74(2)), LEG recommended a proper definition of “fair and adequate compensation” to avoid disputes.
According to the proposal, “fair” should restore affected persons to their original financial position or better, while “adequate” should ensure they are not disadvantaged by resettlement or loss of land.
The organisation further suggested that land compensation (Section 94) should be pegged annually by the Land Valuation Board and the Ministry of Food and Agriculture.
Currently, companies pay between GH¢400.00 and GH¢1,000.00 for an acre of land, often leading to conflicts between mining companies and landowners.
A clear yearly benchmark, the NGO believed, would provide transparency and reduce disputes.
LEG maintained that the proposed amendments, if adopted, would strengthen governance in the mining sector, improve local economic benefits, and reduce conflicts in mining communities.
The proposed amendments were put together by LEG with funding support from STAR Ghana Foundation and submitted together with other inputs from the National Coalition on Mining.
