The Minerals Commission has warned against fronting arrangements in Ghana’s mining sector, saying it will take firm action against foreign entities using Ghanaian nationals to secure mineral rights.
The Chief Executive Officer of the Commission, Mr Isaac Andrews Tandoh, described the practice as unethical and said it undermined efforts to ensure that Ghanaians derived greater ownership and value from the country’s mineral resources.
“The Commission will remain firm against ‘fronting’ arrangements, where foreign entities use Ghanaian names to secure mineral rights. That practice is unethical and disempowers our own people. We are ready to confront it,” he said.
Mr Tandoh made the statement at Ghana Day on the sidelines of the 28th China Mining Conference and Exhibition at the Meijiang Convention Centre in Tianjin, China.
He commended Chinese investors for their contribution to employment, productivity, safety and skills development in Ghana’s mining industry, but said future investments must place greater emphasis on genuine partnerships, local participation and value addition.
“While we appreciate your contribution, the future must be about genuine partnerships that advance local content and value addition,” he said.
Mr Tandoh said transparent engagement between the regulator, local businesses and foreign investors was essential to ensure that growth in the mining sector translated into broader economic benefits for Ghana.
He said that over the past year, under President John Dramani Mahama and the Minister of Lands and Natural Resources, Mr Emmanuel Armah-Kofi Buah, the Commission had revoked more than 300 improperly acquired small-scale mining licences.
The Commission had also operationalised District Mining Committees to strengthen local oversight of mining activities, he said.
Mr Tandoh said the Commission had undertaken a review of the Minerals and Mining Act, 2006 (Act 703), revoked Legislative Instrument 2462, which permitted mining in forest reserves, and introduced a new medium-scale mining licensing category.
He said the Commission had also proposed a revised royalty regime to ensure that Ghana secured greater returns from its mineral resources, particularly during periods of high gold prices.
“Seventy years after independence, we must ask ourselves whether we truly own and benefit from our mineral wealth. Employment is not the same as ownership. Labour is not the same as control,” he said.
Mr Tandoh said the Commission was embedding local content requirements into mining agreements, procurement decisions and employment policies to increase Ghanaian participation across the mining value chain.
He assured investors that the Commission would continue to enforce Ghana’s mining laws fairly and without fear or favour.
He said the Commission was also undergoing full digitalisation to improve transparency, efficiency and accountability in the administration of mineral rights.
“Ghana remains committed to maintaining a transparent and predictable regulatory regime capable of attracting responsible investors while protecting the country’s mineral resources,” he added.
