Ghana’s Cabinet Approves Review of Minerals and Mining Act to Boost Ec

The Cabinet has approved a review of the Minerals and Mining Act, 2006 (Act 703), a move aimed at strengthening regulation, transparency, and sustainable management of the country's mineral resources. The review is part of a broader regulatory transformation aimed at modernizing the mining sector and ensuring that the country's mineral wealth contributes more effectively to national development.

Proposed Reforms to Streamline Mining Licenses

The proposed reforms will see the maximum duration of mining leases reduced from 30 to 20 years. Additionally, reconnaissance and prospecting licenses will be consolidated into a single exploration license, with the exploration period capped at five years. This move is aimed at making the regulatory regime more efficient and creating opportunities for other credible investors to participate in the sector.

Deputy Minister for Lands and Natural Resources, Dr Yusif Sulemana, said the existing licensing arrangements could tie up mineral concessions for unnecessarily long periods, preventing other potential investors from accessing them. "You have instances where companies will go in for reconnaissance for a very long time and then go back and take prospecting licences. Only God knows when they will finish," he said.

Decentralization of Mineral Governance

The government has also taken steps to decentralize the operations of the Minerals Commission, ending the decades of excessive centralization of regulatory services in Accra. This move is expected to provide the Commission with the necessary personnel and operational capacity to regulate mining activities more effectively while bringing services closer to stakeholders. The newly commissioned facility in the Ashanti Region will serve as a major centre for the Commission's regulatory oversight activities.

Mr Isaac Tandoh, the Chief Executive Officer of the Minerals Commission, described the facility as a tangible manifestation of a new era in mineral governance characterized by accessibility, efficiency, transparency, and a renewed commitment to sustainable development. He said the facility had been designed as a "one-stop shop" for mineral administration in the region and beyond, bringing together modern office accommodation, specialized laboratory services, and a public education museum.

New Era in Mineral Governance

The review of the Minerals and Mining Act is part of a broader effort to modernize the mining sector and ensure that the country's mineral wealth contributes more effectively to national development. The proposed reforms and decentralization of mineral governance are expected to make the regulatory regime more efficient and create opportunities for other credible investors to participate in the sector. As the country continues to rely heavily on its mineral resources, the need for effective regulation and sustainable management has never been more pressing.

Source: JOY