The Ghana Chamber of Mines has expressed serious concerns regarding proposed amendments to the Minerals and Mining Act that aim to shorten mining lease durations from 30 years to 15 years. During a press briefing, Chief Executive Officer Ing. Dr. Ken Ashigbey argued that reducing the lease period could deter both local and foreign investment, undermining the attractiveness of Ghana’s mining sector. He emphasized that a shorter lease would negatively impact the net present value (NPV) calculations for mining projects, making them less feasible and discouraging capital inflows.
Dr. Ashigbey cautioned that the proposed changes might lead companies to engage in unsustainable practices, such as high grading, where they prioritize the extraction of high-value ore in a limited timeframe while neglecting lower-grade deposits. This, he noted, would compromise the economic viability of more complex and deep-seated ore bodies. Furthermore, he highlighted that a reduced lease period could weaken Ghana’s competitiveness as a mining destination by limiting the time available for companies to recover their investments and increasing the tax burden compared to other jurisdictions.
To protect the sector, the Chamber recommends maintaining the current tenure of mining leases, including renewal provisions as stipulated in the Minerals and Mining Act, 2006 (Act 703). They believe that preserving the existing legal framework is essential for sustaining investor confidence, securing long-term mining projects, and ensuring the sector’s continued contribution to Ghana’s economic development.