Ghana is preparing the most comprehensive reform of its mining laws in two decades, with sweeping amendments set to reshape how mineral resources are managed, leased, and shared with communities.
The proposed changes, led by the Minerals Commission, aim to modernise Act 703, which will turn 20 years old in the next seven months, and address regulatory gaps, outdated provisions, and public concerns about limited local benefits from mining.
Speaking at a policy roundtable hosted by the Institute of Economic Affairs (IEA), Chief Executive Officer of the Minerals Commission, Martin Ayisi, said there are a number of factors driving the changes in policy and the law.
He cited mounting community dissatisfaction, challenges in regulatory enforcement since 2012, and the need to align with international best practices.
One of the key reforms is the introduction of a nine-year cap on prospecting licences, an initial three years with two renewals of three years each.
Currently, Ghana allows indefinite renewals, which Ayisi said encourages companies to hoard rights without meaningful investment. He explained that the cap mirrors regimes in countries such as South Africa, Namibia, Kenya and Burkina Faso.
Another major shift is the abolition of development agreements, arrangements introduced by the IMF and World Bank that apply only to Gold Fields, Newmont, and AngloGold Ashanti. Ayisi argued that the agreements favour companies more than the state and have outlived their usefulness in Ghana’s context. While existing contracts will remain valid, they will not be renewed.
The reforms also propose reducing mining leases from 30 years to 15 years, renewable for up to 10 years.
According to Ayisi, most African peers grant leases between 20 and 25 years, making Ghana’s 30-year term outdated. He added that there is no need for 30-year leases anymore.
In a bid to strengthen local benefits, the draft law will make community development agreements mandatory, requiring companies to sign one within six months of securing a lease.
This will replace the voluntary corporate social responsibility model, ensuring communities receive structured benefits from mining. For decades, communities have complained of inadequate compensation and minimal development despite Ghana being Africa’s largest gold producer.
The review also introduces tougher measures to strengthen the state’s role. These include removing upper limits on fines for mining violations, shifting dispute resolution from international arbitration to Ghana’s High Courts, and limiting stability agreements, which Ayisi described as the worst globally.
Furthermore, mining firms will be required to list on the Ghana Stock Exchange, allowing Ghanaians, including pension funds, to own shares, while local content provisions will be expanded to deepen indigenous participation in the sector.
Ayisi stressed that the reforms are designed to balance investor confidence with national interests, creating discipline in exploration and ensuring resources are exploited responsibly.
He said the changes are intended to put Ghana’s mining sector on a new path that mutually benefits the country as well as investors.
Parliament is expected to debate the amendments once the draft bill is finalised. If passed, the legislation would represent the most significant reset of Ghana’s mining regime in a generation, reshaping how resources are governed and how benefits are shared among the state, investors, and local communities.
