Ghana advances major mining law reforms

Ghana is set to roll out sweeping reforms to its mining legislation the most substantial overhaul in nearly two decades in a bid to increase local benefits and tighten regulatory controls amid surging global commodity prices.

The proposed changes, announced by Lands and Natural Resources Minister Emmanuel Armah Kofi Buah, will shorten the duration of mining licences and introduce mandatory revenue-sharing with host communities. The initiative forms part of a broader West African movement to secure greater value from mineral wealth.

Under the revised framework, prospecting licences will be granted for defined periods, while mining leases will no longer carry the 30-year maximum term. Instead, lease durations will be decided jointly by the government and mining operators, enhancing flexibility and accountability.

Mineral rights

A new three-tier mineral rights structure is also in the works, including a medium-scale category aimed at closing the gap between large-scale multinational firms and small-scale artisanal miners. In a notable shift, the government is reviewing the long-standing stability agreements that have provided tax and regulatory guarantees to major investors for up to 15 years. Future agreements would be limited to the period required for capital recovery on major investments, potentially increasing state revenue in the long term.

“These reforms are forward-looking,” Minister Buah emphasized. “In Ghana, we don’t do retrospective laws.” He assured stakeholders that current contracts will remain unchanged, setting Ghana apart from other reforming nations like Mali and Burkina Faso that have applied legal changes retroactively.

The reform process, which includes revisions to the Minerals and Mining Act and mining policy, is reportedly 85% complete following extensive national consultations. As Africa’s top gold producer, Ghana expects gold output to reach 5.1 million ounces in 2025. The country hosts global mining giants such as Newmont, Gold Fields, and AngloGold Ashanti, and also exports bauxite and manganese. Efforts are underway to launch lithium production as part of mineral diversification.

However, Ghana’s gold industry faces a significant challenge from illicit trade, with an estimated $11 billion lost through gold smuggling mostly destined for the United Arab Emirates, particularly Dubai. The reforms are seen as a strategic step toward curbing smuggling, strengthening transparency, and ensuring equitable distribution of mining benefits to Ghanaian communities.