Ghana’s Chamber of Mines has warned that reducing mining lease durations from 30 years to 15 would strip authorities of critical flexibility, stressing that the current framework already allows regulators to grant tenure based on feasibility studies rather than automatically awarding 30 years.
Michael Akafia, President of the Chamber and Vice President for External Affairs at Gold Fields West Africa, told The High Street Journal that mining is a long-term, capital-intensive, and high-risk industry, making stable and predictable tenure essential for investment decisions.
He argued that shortening the maximum lease period would erode Ghana’s competitiveness against peer jurisdictions that maintain longer horizons.
“We benchmark against relatively mature mining countries that recognize the need for longer tenures. It would make no sense if Ghana is going down while those other countries are not,” Akafia said, adding that the jurisdictions cited by the minister in defense of the reforms are less mature and in many cases other countries come to Ghana to learn from its regulatory approach.
He clarified that Ghana’s current law already places a maximum cap of 30 years, not an automatic guarantee. Lease durations are determined within that ceiling based on feasibility studies and project specifics, giving regulators discretion to issue shorter terms where appropriate. “The impression should not be created as if once you apply, you automatically get 30 years. That is not the reality,” he said.
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The Chamber acknowledged concerns that some companies may hold mineral rights speculatively without developing them. But Akafia stressed that if this is the government’s main issue, then it should be solved through stronger enforcement, including revoking dormant licenses, rather than by rewriting the entire legal framework. “If lax enforcement is the problem, fix that directly. Don’t change the law in a way that ties the country’s hands,” he said.
Akafia further warned that Ghana could miss opportunities in strategic sectors if lease tenures are cut. With global demand for critical and rare earth minerals rising, feasibility studies may show project lifespans stretching decades. “If we discover rare earths and the feasibility shows viability over a 30-year period, but the law caps leases at 15, we would have tied our hands and made it impossible or very difficult to develop those industries,” he explained.
He emphasized that laws should be drafted with the future in mind, allowing flexibility and discretion for regulators. “That is why you draft with flexibility, so that in the appropriate cases, discretion can be exercised. Changing the tenure takes away that flexibility,” he said.
The Chamber’s pushback comes as the government considers amendments to the Minerals and Mining Act (Act 703) that would halve the maximum tenure of mining leases. While officials frame the reforms as necessary to address inefficiencies in the sector, industry leaders argue that weakening Ghana’s investment appeal risks long-term consequences.
