- Chamber of Mines Pushes for Longer Stability Agreements to Safeguard Ghana’s Mining Competitiveness
The Ghana Chamber of Mines has urged government to reconsider proposals to slash the tenure of mining leases, warning that rigid reforms risk deterring investment and undermining the sector’s long-term contribution to the economy.
Under the review of the Minerals and Mining Act, 2006 (Act 703), one of the most contentious proposals is to reduce the tenure of mining leases from 30 years to 15, with only one possible renewal capped at 10 years. The Chamber argues that such a move would destabilise investment planning, particularly for capital-intensive and complex projects, and could deprive Ghana of critical mining ventures.
Ing. Dr Kenneth Ashigbey, Chief Executive Officer of the Chamber, said the industry is not advocating blanket extensions for all projects, but rather flexibility in tenure to reflect varied geological and financial conditions.
“Every mine is not the same. If tomorrow we encounter a project requiring a longer period due to higher strip ratios or extensive waste removal before accessing ore, why should government deny that flexibility?” he asked during the presentation of the Chamber’s position paper.
The Chamber maintains that shorter tenures reduce the time companies have to recover their investments and earn a fair return, thereby lowering project Net Present Value. This, it warns, would incentivise operators to high-grade deposits and sterilise marginal ore bodies, undermine the viability of deep-seated or complex mines, and limit investment in near-mine exploration.
The Chamber pointed to regional peers as examples of more pragmatic frameworks. Côte d’Ivoire, for instance, grants an initial lease term of 20 years with 10-year renewals, while Kenya provides between 5 and 21 years initially, with renewals not exceeding 21 years. In both countries, lease terms are tied to project economics rather than arbitrary limits.
The Chamber also opposed government’s plan to cut the duration of stability agreements from 15 years to five, describing stability pacts as essential for insulating long-term investments from Ghana’s history of fiscal and regulatory volatility. Stability agreements, it stressed, provide predictability for projects with high upfront costs and long cost-recovery timelines.
Instead, the industry body recommends a minimum tenor of 10 years. Of Ghana’s 14 active large-scale mines, only three currently benefit from stability agreements, which are awarded under project-specific conditions.
The Chamber further rejected proposals to abolish Development Agreements (DAs), which apply to projects exceeding US$500mn. It argued that eliminating this policy tool would reduce Ghana’s competitiveness, increase risk premiums, and discourage large-scale, high-value investments.
On exploration, the Chamber expressed concern over a plan to cut prospecting licences to nine years. Such a reduction, it said, would erode competitiveness, shorten the discovery window, and shrink Ghana’s project pipeline. This would especially hurt Ghanaian participation in exploration, as 80–90 per cent of current prospecting licences are held by locals. The Chamber urged government to retain existing terms, with renewals contingent on verifiable exploration work.
While acknowledging the importance of community development, the Chamber has also called for Corporate Social Investments (CSIs) to remain voluntary. Current law mandates a Community Development Agreement levy of 1 per cent of gross mineral revenue. Additional obligations, it warned, risk overburdening marginal mines and imposing an inflexible cost structure, particularly compared with peer jurisdictions.
The Chamber argued that voluntary CSIs supported by policy guidelines and stakeholder partnerships would foster innovation and ownership in local initiatives, while avoiding an excessive tax burden.
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 sector accounted for 39 per cent of output but contributed less than 1 per cent of tax revenue.
Against this backdrop, Dr Ashigbey reaffirmed the industry’s support for reforms that balance state revenues with sustained private investment. “What we need are data-driven policies that safeguard both government interests and the sustainability of the sector,” he said.
The Chamber’s intervention highlights the delicate trade-off facing policymakers: securing immediate fiscal gains while ensuring Ghana remains competitive in attracting the long-term, high-value investments that underpin one of its most strategic sectors.
