Ghana mining bill proposes state veto share, cuts lease terms

Ghana's draft mining bill would give the mines minister power to require companies to issue the state a free special share with veto rights over key transactions, according to a copy reviewed. The proposal would also shorten mining lease terms to 15 years or the projected life of the mine, whichever is shorter, from as long as 30 years under current law. The bill would let the government require local mineral processing and later restrict exports of unprocessed mineral concentrates. It would replace the Minerals and Mining Act, 2006.

The proposed Minerals and Mining Bill, 2026 would preserve the state's existing 10% The draft would keep a free-carried interest in mining projects and let the mines minister require a special state stake with consent rights over key transactions. Those transactions would cover transfers of mining leases, voluntary liquidations and the disposal of significant overseas assets tied to Ghanaian operations. Companies that do not issue the share within two months could face fines of up to the cedi equivalent of $150,000, the draft showed. The mines ministry, the Minerals Commission and the Ghana Chamber of Mines did not immediately respond to requests for comment.

One mining executive said shorter lease terms and the proposed special state share had not been part of earlier industry consultations. The executive, speaking on condition of anonymity because he was not authorised to comment publicly, said mining companies hope the government will engage further on the bill's more contentious provisions before lawmakers debate it and plan to submit their own proposals during the legislative process. He said the bill could be taken up when parliament resumes in October. Mining accounts for about 14% of Ghana's gross domestic product and more than The sector accounts for half of export earnings, making it a cornerstone of the economy.

The draft bill would let the government require local processing and prohibit exports of unprocessed mineral concentrates through future regulations. A transitional clause would require holders of mineral rights granted before the law takes effect to apply under the new framework when seeking renewals, while giving them priority consideration for equivalent licences, the draft said. Reporting by Maxwell Akalaare Adombila and Emmanuel Bruce in Accra; editing by Robbie Corey-Boulet and Mark Potter. +233205362647