The Ghana Chamber of Mines has raised strong concerns over proposed amendments to the Minerals and Mining Act which is seeking to reduce the duration of mining leases from 30 years to 15 years.

According to the Chamber, such a move could significantly undermine the attractiveness of Ghana’s mining industry -- both local and foreign investors.

Presenting the Chamber’s position paper at a press briefing, Chief Executive Officer, Ing. Dr. Ken Ashigbey, argued that a shorter lease period would discourage capital inflows and compromise the viability of mining projects. “What is going to happen is that if the tenure is short, when you do your NPVs you will find out that the project is not feasible. And if it is not feasible, nobody will bring money to invest. Not only foreign direct investment, but also local direct investment,” he explained.

Dr. Ashigbey warned that a shorter lease period could also incentivize unsustainable practices such as high grading, where companies prioritize extracting high-value ore within the limited lease duration and abandon lower-grade deposits. “If you reduce the tenure, what is going to happen is that you are going to encourage high grading. They will look for the high grade, exploit that because that is the tenure they have, and then leave. This would compromise the economic viability of deep-seated, complex, and marginal ore bodies,” he stressed.

He further cautioned that the broader consequences of the proposal could weaken Ghana’s competitiveness as a mining destination. A reduced lease period, he explained, would cut the time available for companies to recoup investments, lower the net present value of projects, and reduce appetite for near-mine exploration. It would also elevate the tax burden on investors relative to other jurisdictions and shrink the long-term scope for corporate social investment in host communities.

To safeguard the sector, the Chamber has recommended that the tenure of mining leases, including their renewal provisions, should be maintained as currently provided under the Minerals and Mining Act, 2006 (Act 703). The Chamber insists that preserving the existing legal framework will help sustain investor confidence, secure long-term mining projects, and ensure the sector continues to contribute meaningfully to Ghana’s economic development.