New Ghana mining laws to shorten licence periods, boost community investment
The planned overhaul reflects a broader trend across West Africa, where governments are rewriting mining codes to capture more value from rising commodity prices.
Ghanaian Lands and Natural Resources Minister Emmanuel Armah Kofi Buah said the changes, which include scrapping automatic renewal of some licences - will apply only to future contracts, a departure from the stance in Mali and Burkina Faso where military-led governments have applied reforms retroactively,
'In Ghana, we don't do retrospective laws,' Buah said at a presentation in the capital, Accra. 'Existing agreements are sanctified and will be respected.'
He added that the overhaul of the Minerals and Mining Act and mining policy was 85% complete following extensive stakeholder consultations.
DEVELOPMENT REQUIREMENT
Ghana, Africa's top gold producer, expects output to rise to 5.1 million ounces this year. Major miners in the country include Newmont, Gold Fields, AngloGold Ashanti , Zijin, Asante Gold, and Perseus . It also exports bauxite and manganese with plans to start lithium production.
Under the proposed law changes, prospecting licences would no longer be held indefinitely, and the maximum term for mining leases would be reduced from 30 years to a shorter period agreed by the government and firms. Companies failing to meet environmental, social or production obligations would lose the right to automatic licence renewal.
In a major shift, the government plans to abolish development agreements, in which companies send money to the central government.
Instead, companies will be required to sign agreements committing a fixed percentage of gross mineral sales revenue to fund local development projects as the government seeks to address long-standing grievances from communities that they have seen little benefit from mining operations.
The reforms also propose a three-tier mineral rights regime, introducing a new medium-scale licence category to bridge the gap between large multinational operators and small-scale artisanal miners.
Another key change under consideration is the reduction or abolition of stability agreements, which currently offer up to 15 years of tax and regulatory protection to large investors. Future agreements would be limited to capital recovery periods for major investments.
(Reporting by Emmanuel Bruce and Christian Akorlie; Editing by Maxwell Akalaare Adombila, Robbie Corey-Boulet and Emelia Sithole-Matarise)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a day ago
- Zawya
Apus Energy Drives Offshore Revival in Guinea-Bissau Ahead of African Energy Week (AEW) 2025 Silver Partnership
Apus Energy has joined African Energy Week (AEW): Invest in African Energies 2025 – taking place in Cape Town from September 29 to October 3 – as a Silver Partner, spotlighting its entrance into West Africa's offshore frontier. With high-impact drilling now underway, the company is set to bring fresh momentum and investor attention to one of the region's most underexplored hydrocarbon basins. In a key development for West African exploration, Apus Energy spudded the Atum-1X exploration well offshore Guinea-Bissau in September 2024 – the first offshore well in the country in nearly 20 years. Located near Senegal's prolific Sangomar field, the prospect holds a potential 314 million barrels of recoverable oil. The well is being drilled using the Ocean BlackRhino, a seventh-generation drillship operated by Noble Corporation, with well management provided by AGR, part of ABL Group. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Apus Energy entered Guinea-Bissau's upstream sector through the acquisition of 100% interest in the Sinapa (Block 2) and Esperança (Blocks 4A and 5A) licenses from Spanish oil and gas company Petronor. The $85 million farm-out agreement included upfront payments for historical license costs and contingent milestones tied to government approval of a field development plan and sustained production. Covering a total area of 4,962 km 2, the licenses contain two main prospects – Atum and Anchova – with a combined estimated 467 million barrels of unrisked prospective resources. Apus Energy's drilling campaign positions Guinea-Bissau as one of West Africa's most closely watched emerging plays. The company's long-term strategy aligns with the region's energy ambitions and presents new opportunities for investment, local capacity building and energy security. 'Apus Energy's work offshore Guinea-Bissau is a strong signal that frontier exploration in West Africa is entering a new chapter. Their commitment to high-impact drilling, strategic partnerships and long-term value creation reflects the kind of leadership needed to unlock the region's vast untapped potential,' states Tomás Gerbasio, VP of Commercial and Strategic Engagement, African Energy Chamber. With drilling operations in motion and large-scale reserves in play, Apus Energy's participation at AEW: Invest in African Energies 2025 highlights West Africa's strong investment climate and promising potential for frontier basin development. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
a day ago
- Zawya
South Africa: Mining records 1.1% increase in MCI cost index for May
The Minerals Council South Africa (MCSA) has released the mining composite input (MCI) cost index for May, which showed that mining input cost pressures remain well under control, with the latest data (inclusive of labour costs) showing a 1.1% year-on-year increase. By comparison, the producer price index (PPI) for final manufactured goods rose by just 0.1% in May, following a 0.5% increase in April. MCI Cost Index Excluding labour costs, the MCI cost index recorded a year-on-year decline of 0.7% in May, indicating deflationary conditions. This is a positive development, reflecting a broader easing of global cost pressures. Key contributing factors include a decline in crude oil prices, reaching a 2025 low of $64.10 per barrel in May, as well as lower interest rates and an improvement in the nominal effective exchange rate against key trading partners. These factors facilitated cheaper intermediate imports. Electricity Electricity costs remain elevated, continuing to register double-digit growth following NERSA's approved tariff increase of 12.74% for Eskom's 2025/26 financial year. This adjustment, which applies to direct Eskom customers, came into effect on 1 April 2025. Looking ahead, electricity costs are expected to rise further in next month's data, as mid-June marks the start of the winter tariff period during which electricity rates are typically 25–30% higher. To some extent, the impact of rising electricity costs has been offset by a 13.8% year-on-year decline in coke and refined petroleum product prices, which have eased steadily over the past year as the oil price moved lower and the rand gained against the US dollar. Labour costs Labour costs also continue to be a significant contributor to overall input costs, with the sector disbursing approximately R49bn in employee compensation during the first quarter of 2025 alone. Water Additionally, water costs rose by 4.6% year-on-year. As a newly introduced component in the index, water is a critical input for mining operations, and its inclusion enhances the comprehensiveness of the index. Financing Financing costs, by contrast, have eased considerably. Since initiating its rate-cutting cycle in the second half of 2024, the South African Reserve Bank has reduced the prime lending rate by a cumulative 100 basis points. A further 25 basis point cut is anticipated today, which would provide additional relief to capital financing costs. Platinum group metals In May, the PGM sector recorded the highest rate of increase in input cost inflation, more than double the sector average. This marks a shift from previous months, where the gold sector consistently faced the greatest cost pressures. The elevated inflation in PGMs is partly attributed to the difficulty of mining deep-level ore bodies and sustained upward pressure on labour costs. While the sector has undergone significant restructuring over the past year to improve profitability, input cost pressures remain comparatively high. The gold sector followed closely behind, with notable increases also observed in other metallic minerals, chrome, and other mining and quarrying. In contrast, the manganese and coal sectors experienced the lowest input cost inflation among the major commodities, reflecting more stable cost dynamics in those subsectors. Excluding labour, the index reflects deflationary conditions, highlighting a broader easing in global cost pressures. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
a day ago
- Zawya
African central banks' gold rush faces liquidity, price risks, Fitch unit says
Sub-Saharan African central banks that have added gold to their reserves in recent years could face price and liquidity crises if the value of the precious metal slides, BMI, a unit of Fitch Group, said on Wednesday, 30 July 2025. Ghana, Tanzania and Nigeria have been buying gold domestically to beef up their reserves, BMI said, a move accelerated by this year's broader market volatility stoked by US trade tariffs and other geopolitical risks. Policymakers in Kenya and Uganda are exploring a move into gold, Rwanda and Namibia have taken active steps towards adding the metal into their reserves, while Burkina Faso has indicated it will build up its stockpile and Zimbabwe has said its new ZIG currency is backed by gold reserves, BMI said. "Gold is increasingly being used by sub-Saharan African markets as a strategic store of value," said Orson Gard, senior sub-Saharan Africa analyst at BMI, during an investor presentation. The move, however, comes with various risks, he said, citing Ghana where an aggressive gold purchase programme has led to the metal accounting for a third of its reserves according to BMI calculations, driving a surge in the cedi currency and potentially making the country's exports less competitive. Governor of the Bank of Ghana, Johnson Asiama, said on Wednesday that while the West African country was heavily exposed to movements in commodity prices, it was taking measures to protect itself against potential price shocks. "Any sharp price drop would have impact for international reserves... That is why we are starting with the hedging programme," Asiama told a news conference, referring to an arrangement which is expected to limit consequences of unexpected market fluctuations. The price of gold, which touched a record high earlier this year, may have peaked, BMI said, and it faces potential downward pressure from any reduction in US interest rates. "Any sudden drop in global gold prices would have significant implications for those markets in sub-Saharan Africa which have rapidly increased gold as a share of their total reserves portfolio," Gard said. A gradual price decline over the medium-term could also have a negative impact for countries that started buying gold around its recent peak, he added. "This would not only weigh on reserve adequacy but would also undermine the perceived credibility of central bank policy," he said. Ghana and Tanzania, which also rely on gold exports, could be hit by the "double whammy" of a drop in the value of their reserves and lower export earnings, he said. Governments could also struggle to convert their gold holdings into liquid assets like hard currencies, Gard said, pointing to India and Argentina when they faced acute balance of payments challenges in the 1990s and 2000s, respectively.
