Ghana Approves Revised Mining Law to Boost Oversight and Strengthen Local Participation

ACCRA, Ghana – Ghana’s Cabinet has approved a revised mining law for submission to Parliament, marking a significant step in the government’s efforts to strengthen regulation of the country’s mining sector, increase local participation, and intensify the fight against illegal mining.

The proposed amendments to the Minerals and Mining Act, 2006 are designed to modernise Ghana’s legal framework for the mining industry while ensuring that mineral resources contribute more effectively to national development and community welfare.

As Africa’s largest gold producer, Ghana is seeking to balance investor confidence with stronger governance and greater economic benefits from its mineral wealth.

Government Targets Greater Oversight

Speaking in Accra, Minister for Lands and Natural Resources Emmanuel Armah-Kofi Buah said the existing mining legislation, which has been in force for nearly two decades, requires comprehensive reform to address emerging industry challenges and align with the country’s long-term development objectives.

According to the minister, the revised legislation aims to strengthen regulatory oversight, promote responsible mining practices, improve environmental protection, and combat illegal mining activities that continue to threaten ecosystems and local livelihoods.

The reforms also seek to encourage domestic value addition, strengthen local content requirements, and deepen linkages between the mining industry and Ghana’s manufacturing sector.

New Exploration Licensing Framework

One of the key changes proposed under the revised law is the replacement of separate reconnaissance and prospecting permits with a single exploration licence.

The new licence will be valid for a maximum of five years, with any extension subject to a review of the company’s performance during an initial two-year work programme.

The government says the move is intended to discourage speculative licence holders who acquire mineral rights without carrying out meaningful exploration activities.

Officials argue that companies unable to develop exploration projects within the prescribed timeframe should relinquish those licences, allowing serious investors to access Ghana’s mineral resources.

Communities to Play a Greater Role

The proposed legislation introduces district mining committees, giving local communities an earlier and more formal role in the mining licence approval process.

Mining companies will also be required to negotiate and sign Community Development Agreements directly with host communities before operations commence.

The government believes this approach will improve transparency, strengthen relationships between mining companies and local residents, and ensure that mining projects deliver more tangible socio-economic benefits to affected communities.

Mining Leases and Industry Reforms

While exploration licensing rules will change, mining leases will continue to be capped at 20 years under the proposed legislation.

The revised mining law builds on a series of reforms introduced by the Ghanaian government in 2026 to maximise returns from the country’s mineral sector.

Earlier this year, Ghana implemented a sliding-scale gold royalty system linked to international gold prices and announced plans to phase out fiscal stability agreements previously offered to major mining companies.

Those policy changes could affect some of the country’s largest mining investors, including Newmont, Gold Fields, AngloGold Ashanti, Zijin Mining and Perseus Mining.

Outlook for Ghana’s Mining Sector

The proposed legislation reflects Ghana’s broader strategy to strengthen governance across its mining industry while creating greater value from its natural resources.

If approved by Parliament, the revised law is expected to improve regulatory certainty, increase accountability among licence holders, encourage responsible investment, and provide host communities with a stronger voice in mining developments.

For investors and exporters, the reforms also signal Ghana’s commitment to building a more transparent and sustainable mining sector that supports long-term economic growth and enhances the country’s position as one of Africa’s leading mineral producers.