Mines Chamber opposes lease cuts, calls for flexible agreements to sustain investment
By Eugene Davis
The Ghana Chamber of Mines has urged government to maintain the current tenure of mining leases—as well as their frequency and duration of renewal—as stipulated in the Minerals and Mining Act, 2006 (Act 703).
At present, the Act is under review, with one of the proposals seeking to reduce the tenure of mining leases from 30 years to 15 years, with a single renewal period of not more than 10 years.
According to the Chamber, such a measure would have significant consequences, including:
Reduced time for companies to recoup investments and earn a fair return, thereby lowering a project’s Net Present Value (NPV).
Incentivising high-grading and sterilisation of marginal ore bodies.
Undermining the economic viability of deep-seated, complex, or marginal ore bodies.
Narrowing the scope for mitigating market and technical risks.
Reducing investment in near-mine exploration.
The Chamber maintains that shorter lease durations will ultimately deprive Ghana of critical mining projects.
Presenting a position paper on the proposed amendments, Ing. Dr. Kenneth Ashigbey, Chief Executive Officer of the Chamber, clarified that the industry is not calling for longer tenures for all mining companies. Rather, the concern is that restricting all projects to a short tenure would be counterproductive.
He explained: “If tomorrow we encounter a project requiring a longer period due to its complexities—such as higher strip ratios or extensive waste removal before accessing ore—why should government deny that flexibility? Every mine is not the same, and the economics vary significantly.”
Dr. Ashigbey further pointed out that the current law already makes provision for stability agreements, which are not automatically granted to all mining companies. Out of 14 mines, only three currently benefit from stability agreements. In his view, government should establish a clear framework that allows flexibility, ensuring stability agreements are granted when key project-specific conditions are met.
Drawing comparisons with other mining jurisdictions, the Chamber noted that Côte d’Ivoire offers an initial lease term of 20 years with a renewal period of 10 consecutive years, while Kenya provides an initial lease of between 5 and 21 years, with renewals not exceeding 21 years. In both cases, the tenor of mining leases is tied directly to project economics.
They also argue that Corporate Social Investments(CSIs) be maintained as voluntary but well-guided CSR frameworks, supported by clear policy guidelines and stakeholder partnerships.
Under the law, there is a mandatory Community Development Agreement(CDA) with a levy of 1% of gross mineral revenue. The Chamber and its member companies continue to invest significantly in mining communities.
According to the chamber,this move restricts innovation, ownership, and flexibility in initiatives to accelerate community development, likely to overburden marginal mines or those with relatively weak financials, increases the tax burden of mines in Ghana, relative to peers in other jurisdictions and irresponsive to the financial health of mines.
On the reduction in the duration of Stability Agreement, the government’s proposal is to reduce the tenor of stability agreements from 15 years to 5 years
Stability agreements provide: Predictability for projects with significant capital expenditure and long lead times for cost recovery
Enables investors to earn a fair return on their investments.
Ghana’s history of frequent tweaks in the fiscal and legal regime heightens
investment risk, to insulate against such risks, large-scale investments would require stability agreements with a tenor of at least 10 years
However, the Chamber recommends a stability agreement regime with a minimum tenor of 10 years.
The Ghana Chamber of Mines also cautioned against the proposed abolition of Development Agreements (DAs), which are designed to attract large-scale mining investments of over US$500 million. According to the Chamber, scrapping DAs would lower the sector’s competitiveness, increase risks for high-value projects, and limit Ghana to low-value investments. It therefore recommends that DAs be maintained as a flexible tool to be applied at the government’s discretion.
On the reduction of prospecting licences, government has proposed cutting their tenure to 9 years. The Chamber warns this would erode exploration competitiveness, shorten the discovery window, shrink Ghana’s project pipeline, and limit the country’s ability to map and realise its mineral potential. It could also discourage investment in greenfield projects and derail efforts to boost Ghanaian ownership, as 80–90% of prospecting licences are currently Ghanaian-owned.
The Chamber instead proposes retaining the existing tenure and tying renewals to verifiable work undertaken.
CEO Ing. Dr. Kenneth Ashigbey reaffirmed the Chamber’s commitment to supporting reforms that balance state benefits with sustained investments, stressing the need for data-driven policies that secure industry sustainability, resilience, and long-term benefits for Ghana.
As of 2024, Ghana had 24 large-scale mines—one state-owned, two wholly Ghanaian-owned, and two with significant Ghanaian participation. Meanwhile, the small-scale gold sector contributed 39% of national output but less than 1% of tax revenue.
Ing. Dr. Kenneth Ashigbey
