Ghana to replace draft mining bill with revised version, sources say

Ghana is expected to replace a draft mining bill before parliament with a revised version that restores a maximum 20-year mining lease term and clarifies provisions that have raised concerns among miners, three people familiar with the matter said.

Reuters reported last month that the Minerals and Mining Bill published by parliament would limit new mining leases to 15 years or the projected life of the mine, whichever is shorter, compared with up to 30 years under current law. It would also give the minister the power to require mining companies to issue the state a special share.

Two senior government officials and a mining executive said a revised bill is expected to replace the lease provision with a maximum 20-year term, in line with a policy position outlined by the mines minister in July.

“There was a mistake with the document that eventually went to parliament and that will be corrected,” a mines ministry official said, speaking on condition of anonymity because he was not authorised to comment publicly. The sources did not say when the revised bill would be reintroduced.

The expected changes follow concerns raised by the industry. The Ghana Chamber of Mines said on Thursday that the minister’s power to require a mining company to issue the state a special share already exists under the Minerals and Mining Act and is largely being carried over into the draft bill, albeit with tougher penalties for non-compliance.

Ken Ashigbey, CEO of the chamber, said discussions with the authorities had produced “good compromise positions”, including the proposed 20-year lease term. He said the remaining issues would be taken up with parliament.

The mines ministry and the Minerals Commission did not immediately respond to requests for comment.