Chamber of Mines Opposes Proposed 15-Year Lease Tenure

By Praisebell Rosemond Larbi

The Ghana Chamber of Mines has expressed strong opposition to a proposed amendment to the Minerals and Mining Act that seeks to reduce the duration of mining leases from 30 years to 15 years, cautioning that the move could damage Ghana’s reputation as a mining investment destination.

At a press briefing in Accra, the Chief Executive Officer of the Chamber, Ing. Dr. Ken Ashigbey, argued that the proposal would discourage both foreign and local investors, compromise the viability of mining projects, and ultimately threaten the sustainability of the sector.

“What is going to happen is that if the tenure is short, when you do your NPVs [Net Present Values] 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,” Dr. Ashigbey explained.

He warned that the reduced lease period could also trigger short-term and unsustainable practices, particularly high grading where companies focus on extracting only the highest-value ore within the lease period 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.

Beyond direct mining operations, Dr. Ashigbey cautioned that the wider consequences of the amendment could weaken Ghana’s competitiveness compared to other mineral-rich countries. He explained that investors would have a shorter time frame to recoup capital, reducing the net present value of projects and discouraging near-mine exploration. This, he added, would elevate tax burdens on companies and limit their ability to fund long-term community development programs.

To safeguard the sector’s growth and stability, the Chamber has recommended that Parliament maintain the current lease duration of 30 years, with its renewal provisions, as stipulated in the Minerals and Mining Act, 2006 (Act 703).

According to the Chamber, retaining the existing legal framework is essential to sustain investor confidence, secure long-term projects, and ensure that the mining sector continues to contribute significantly to Ghana’s economy.