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Ghana Moves to Ratify and Clear Mining Lease Delays

6 months ago
in Business, Economy, Editor's pick, Features, General, highlights, Home, home-news, latest News, Mining, News, Political
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  • Ghana Moves to Ratify and Clear Mining Lease Delays

Ghana’s government is preparing to submit a backlog of mining agreements to Parliament for ratification, in a move that could restore regulatory certainty to the extractive sector and address a long-standing constitutional gap that has returned to the centre of public debate following recent scrutiny of the Damang mine transition.

Speaking at the Ghana Chamber of Mines Breakfast Meeting in Accra on Monday, Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, said the government was already engaging parliamentary leadership ahead of plans to table several outstanding mining agreements for approval.

“We are very shortly going to go into Parliament with a lot of ratifications, not only with Azumah but a lot of other outstanding ratifications,” he stated.

The minister’s comments are significant because they come at a time when Ghana’s mining industry is under renewed public scrutiny over the constitutional requirement that transactions involving the grant of mineral rights be submitted to Parliament for ratification.

That debate intensified after IMANI Africa Vice-President Bright Simons raised questions about the legal basis for Damang Gold Mine Ltd, as lessee, and Engineers & Planners, as operator, to continue operations and sell gold from the Damang concession while parliamentary ratification is pending.

But as NorvanReports has already reported, the Damang issue cannot be understood in isolation. Documents reviewed by this portal show that non-ratification has historically been a wider industry problem, not a special exception created for Damang Gold Mine Ltd or Engineers & Planners.

A Supreme Court action filed in 2018 named the Attorney-General, the Minerals Commission and 37 mining and related companies in a case challenging the failure to secure parliamentary ratification for mining leases.

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The reliefs sought in that case were far-reaching. The plaintiffs asked the Supreme Court to declare that no company was entitled to exploit minerals without parliamentary ratification and further sought declarations that revenues and financial gains made from such operations were unconstitutional where the underlying transactions had not been ratified.

That record is central to the current debate. It shows that Ghana’s ratification problem did not begin with Damang. It had existed for years across parts of the mining industry, including among major foreign-controlled operators that had produced, exported and sold minerals while their leases were either awaiting ratification or had not gone through the process.

Mr Buah also disclosed that the government had received a petition from Azumah and had constituted a committee to examine the matter.

“We received a petition from Azumah. We have set up a committee which is working to bring their findings,” the minister said.

His comments indicate that the government is attempting to handle mining disputes through due process rather than arbitrary enforcement. That approach is critical in a sector where regulatory uncertainty can affect capital flows, mine development, employment, local economies and investor sentiment.

“This industry relies on regulations,” the minister said. “If we say somebody has broken a law or regulation, we want to make sure we subject them to the test and ensure that any punishment is fair in its application.”

For Ghana, that principle is particularly important now. The country is seeking to deepen local participation in mining, attract new investment into gold and critical minerals, and retain greater value from its natural resources. But it must do so without creating the impression that regulatory enforcement is selective or politically motivated.

The Damang case sits exactly at that intersection.

As NorvanReports has previously reported, the transition at Damang followed the expiry of Abosso Goldfields Ltd’s extended lease on April 18, 2026. Government could not leave the mine, machinery and assets unattended, particularly with more than 1,000 Ghanaian workers and more than 20 third-party contracting entities exposed to operational disruption.

After a tender process, Damang Gold Mine Ltd was selected as lessee, with Engineers & Planners appointed as operator. The arrangement was designed to maintain mine continuity, protect jobs and avoid revenue losses while the formal lease and ratification processes were pursued.

That context matters because a producing mine cannot simply be abandoned while paperwork moves through state institutions. Mine shutdowns carry labour, safety, environmental, community and fiscal risks. Mr Buah appeared to recognise this when he noted that government could not allow mines to stop operating where thousands of jobs and community economies were at stake.

“We couldn’t let the mine not operate with thousands of jobs at stake and communities whose economies depend on these mines,” he said.

The minister added that the Minerals Commission retains powers to implement interim regulatory measures to ensure operational continuity while legal and parliamentary processes are completed.

That position aligns with the practical reality of the Damang transition. It also reinforces the argument that Ghana’s immediate priority should be to complete the ratification process, not to undermine a Ghanaian-led mining operation that stepped in to keep a strategic asset productive.

The broader question is one of consistency. If foreign-controlled mining companies operated for years before ratification without the same intensity of public criticism, then the current scrutiny of Damang Gold Mine Ltd and Engineers & Planners must be measured against that historical record.

Bright Simons is right that Article 268 must be respected. But the strength of his argument is weakened when the same constitutional issue existed across the mining sector for years without comparable public pressure against several foreign operators.

The government’s pending ratification exercise may therefore do more than regularise outstanding mining agreements. It could also reset the terms of the debate by making clear that Ghana’s mining sector needs one consistent legal standard for all operators — foreign and Ghanaian alike.

For investors, the move should provide comfort that government intends to address uncertainty through Parliament rather than through abrupt administrative action. For local mining firms, it signals that Ghanaian participation can advance within a lawful framework. For communities, it preserves the continuity of operations that sustain jobs, contracts and local commerce.

The Damang debate has exposed an old weakness in Ghana’s mining governance system. The government’s task now is to correct that weakness without destroying operational value in the process.

If the pending agreements are promptly submitted to Parliament and ratified, Ghana would have taken an important step toward restoring certainty in a sector central to exports, fiscal revenues and local industrial participation.

Tags: Ghana Chamber of MinesGhana Moves to Ratify and Clear Mining Lease DelaysGovernment Prepares Mining Lease Ratifications as Damang Case Highlights Need for Regulatory CertaintyMining Ratification Push Strengthens Ghana’s Bid to Balance Investor Confidence and Local ParticipationParliament
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