THE Ghana Chamber of Mines (GCM) has made several proposals to enrich the Minerals and Mining Act (Act 703), which is currently under review, to help position Ghana as the best mining jurisdiction in Africa and attract both Foreign Direct Investment (FDI) and Local Direct Investment (LDI) to the sector.
According to the Chamber, though the review was positive and particularly the introduction of the medium-scale mining tier was commendable, some of the issues that were being considered for incorporation in the law would be inimical to the mining sector.
The Chief Executive Officer of the GCM, Dr Kenneth Ashigbey, said the country had a unique opportunity through the review to craft a robust mining law that would make the sector more competitive than its peers such as Côte d’Ivoire, Mali, Kenya and Guinea.
He explained that the review must result in a modern, flexible, and data-driven law that makes Ghana the destination of choice for mining investment, while ensuring benefits for Ghanaians.
Among the key proposals, the Chamber called for the maintenance of the current tenure of mining leases and renewals, arguing that reducing the tenure to 25 years with a single 10-year renewal, as proposed in the draft review, would undermine the “Mining is highly risky and requires long-term investment horizons. If the tenure is shortened, projects may not be feasible, and investors, both foreign and Ghanaian, will simply take their money elsewhere,” Dr Ashigbey cautioned.
He explained that shorter leases would also encourage “high grading,” where companies target only the richest ore within the limited time, leaving behind complex but valuable deposits.
On community development, the Chamber raised concern about the proposals to legislate a fixed one per cent of gross mineral revenue for community projects.
Instead, Dr Ashigbey recommended maintaining the current voluntary system, but guided by a clear national framework.
“If we make one per cent mandatory, companies will simply limit themselves to that, and it will be perceived as another tax. Last year alone, the industry voluntarily invested $28 million in social interventions. A flexible, well-guided framework works better for both companies and communities,” Dr Ashigbey noted.
The GCM also urged government to maintain fiscal stability agreements for a minimum of 10 years, saying such predictability was crucial for projects with significant capital expenditure.
Also, the CEO of GCM said the Chamber was worried about the proposed abolition of development agreements, stressing that they remained critical tools for attracting investments above $500 million.
“Abolishing development agreements would make Ghana uncompetitive. What is needed is not abolition but a robust framework with clear milestones to ensure accountability,” Dr Ashigbey stressed.
On prospecting licences, the Chamber recommended maintaining the existing tenure but tying renewals to evidence of work done.
Dr Ashigbey said shortening prospecting terms would hurt Ghanaians most, since 80 to 90 per cent of prospecting licences were currently held by local investors.
“If we truly want Ghanaians to participate in the sector, then we must not shortchange them with reduced tenure. Instead, let’s ensure renewals are based on verifiable work,” he said.
Dr Ashigbey emphasised that flexibility must underpin the new mining law to accommodate the uncertainties of the sector and the changing economics of minerals such as gold and lithium.
“We must avoid rigidity. Investors do not have emotions about Ghana; they will go where conditions are most attractive. If Côte d’Ivoire or Mali offers better terms, even Ghanaian investors will move there,” he said.
Dr Ashigbey stressed that the Chamber’s recommendations were not intended to water down government’s authority but to ensure Ghana built a mining regime that balanced investor confidence with national benefit.
“Our interest is Ghana’s interest. We Want a law that guarantees sustainability, creates jobs, attracts capital and ensures that centuries from now, Ghana will remain the Gold Coast,” he stated.
The Chief Operating Officer of the Chamber, Mr Ahmed Nangtomah, echoed the call for a forward-looking law, saying it should anticipate future mineral discoveries and position mining as a catalyst for national development.
“This law must stand the test of time. It should not only regulate current minerals but also be adaptable to new ones that may be discovered in future,” Mr Nangtomah said.
BY KINGSLEY ASARE
