Government moves to tighten control over mining companies under new bill

Mining companies operating in Ghana could face tighter government control over major business decisions under a proposed new mining law.

The Minerals and Mining Bill, 2026, would give the Minister responsible for Mines the power to require mining companies to issue the state a special share that comes with consent rights over certain major transactions.

According to a Reuters report sighted by GhanaWeb Business, the proposed special share would be separate from the government’s existing 10% free-carried interest in mining projects.

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Under the draft bill, the special share could give the state a say in transactions such as the transfer of mining leases, the voluntary liquidation of a mining company and the sale of significant overseas assets linked to its Ghana operations.

Companies that fail to issue the special share within two months could face fines of up to the cedi equivalent of US$150,000.

The proposed law would also shorten mining lease periods. New leases would run for 15 years or the projected life of the mine, whichever is shorter, compared with terms of up to 30 years under the current law.

The bill would also allow the government to require mining companies to process minerals in Ghana and impose restrictions on the future export of unprocessed minerals.

The proposed law is intended to replace the Minerals and Mining Act, 2006, as the government seeks to increase mining revenues and ensure Ghana derives more value from its mineral resources.

However, some mining companies have raised concerns about parts of the bill, saying they were not discussed during earlier meetings with the industry.

A mining executive told Reuters that the proposed shorter lease periods and special state share were not part of those earlier discussions.

The executive said mining companies are expected to present their own proposals as Parliament considers the bill. Further discussions with the government are also expected before the bill is debated.

The bill could be considered by Parliament when it resumes in October.

Mining is a key part of Ghana’s economy, contributing about 14% of GDP and more than half of the country’s export earnings.

Major mining companies operating in Ghana include Newmont, Gold Fields, Zijin Mining and Perseus Mining.

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The bill would also affect existing mining rights. Companies with existing mineral rights would have to apply under the new law when renewing their licences but would receive priority when applying for similar licences.

If approved, the new law would change how Ghana regulates mining companies, including their leases, mineral processing and major business transactions.

DR/MA

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