Ghana Draft Mining Bill Proposes State Special Shares and Tighter Mineral Rules

Meta Description: Ghana is considering major changes to its mining legislation that could strengthen government control over strategic mining assets, increase local mineral processing and introduce tighter rules for mining companies.

A draft mining bill reviewed by Reuters would give the Minister responsible for Mines the power to require mining companies to issue the state a free special share carrying consent or veto rights over certain major transactions.

The proposed special share would give the government greater influence over key corporate decisions involving mining companies, although the specific transactions subject to state approval would be determined under the new legislation.

The bill also proposes reducing the maximum duration of mining leases. Under the draft legislation, leases would run for 15 years or the projected life of the mine, whichever is shorter, compared with terms of up to 30 years under Ghana’s existing mining law.

Another major provision would allow the government to require minerals produced in Ghana to undergo local processing. The legislation would also create the possibility of future restrictions on exports of unprocessed mineral concentrates.

The proposed changes form part of Ghana’s broader efforts to increase the economic value retained from its mineral resources. The country is one of Africa’s leading gold producers and has increasingly focused on developing greater domestic value addition within the mining sector.

Existing holders of mineral rights would also be required to transition into the new licensing framework if the bill becomes law.

The proposed legislation could therefore affect how mining companies structure investments, develop projects and plan mineral exports in Ghana.

The draft remains subject to the legislative process and could be amended before becoming law. Its final provisions will determine how the proposed state share, shorter licences and local processing requirements are implemented across the mining industry.