Ghana is preparing a major revision of its mining laws that would limit the duration of licences and compel mining companies to share profits directly with communities near mining sites.
The plan marks the most extensive mining policy change in nearly 20 years and is aimed at ensuring local residents benefit more directly from the country’s resource wealth.
The new rules will apply only to future contracts and not retroactively, unlike reforms in neighboring countries such as Mali and Burkina Faso.
Ghana’s government says the draft reforms, which are 85% complete, follow months of discussions with stakeholders across the mining sector.
Ghana is Africa’s top gold producer, with an expected output of 5.1 million ounces this year.
The country also produces bauxite, manganese, and is preparing to enter the lithium market.
Major global mining firms active in Ghana include Newmont, AngloGold Ashanti, Gold Fields, Zijin, Perseus, and Asante Gold.
Key changes include a ban on indefinite prospecting rights and a cut to the maximum lease term, which currently stands at 30 years.
Companies that fail to meet environmental or social requirements will lose the right to renew their licences automatically.
Another part of the reform will require mining firms to commit a fixed share of their gross sales directly to local development.
This replaces older development agreements where payments went through central government channels, often bypassing affected communities.
The new framework will also introduce a middle-tier licence, targeting medium-scale operations to close the gap between large multinational miners and small artisanal operators.
Additionally, the government may limit or cancel long-term stability agreements, which now give investors tax and regulatory protections lasting up to 15 years.
In the future, such protections will only apply during capital recovery phases.