KEY POINTS
- Ghana proposes free special state shares with veto rights over key mining transactions.
- Mining lease terms could be reduced from 30 years to 15 years or the mine’s projected life.
- The bill would allow local processing requirements and future restrictions on raw mineral exports.
Ghana is considering a new mining law that would give the government greater control over mining companies, including the power to demand free special shares with veto rights over major business decisions.
The proposed legislation, known as the Minerals and Mining Bill, 2026, would also shorten mining lease terms, introduce stricter requirements for local mineral processing and potentially restrict exports of unprocessed minerals.
The draft bill, reviewed by Reuters, is part of the government’s broader efforts to increase revenue from the mining industry, strengthen state participation and ensure that more economic benefits from the country’s mineral resources remain within Ghana.
Under the proposed legislation, Ghana’s mines minister would have the authority to require mining companies to issue the state a free special share, which would grant the government consent rights over certain major corporate transactions.
These transactions would include the transfer of mining leases, voluntary liquidation of companies and the disposal of significant overseas assets connected to their Ghanaian operations.
The proposed special share would be separate from the government’s existing 10% free-carried interest in mining projects, which allows the state to hold an ownership stake without directly financing its proportionate share of initial project costs.
Mining companies that fail to issue the special share within two months of being required to do so could face fines of up to the equivalent of $150,000 in Ghanaian cedis, according to the draft bill.
The provision would give the government additional influence over major corporate decisions and potentially strengthen its oversight of mining assets operating within the country.
Mining Lease Terms to Be Shortened
The bill also proposes reducing the maximum duration of mining leases from 30 years under the existing legal framework to 15 years or the projected life of the mine, whichever is shorter.
The proposed change would significantly alter the terms under which mining companies secure long-term rights to explore, develop and extract mineral resources in Ghana.
The shorter lease period could require mining operators to engage more frequently with the government over licence renewals and the continuation of their operations.
The bill’s transitional provisions state that companies holding mineral rights issued before the new law takes effect would be required to apply under the revised framework when seeking renewals.
However, existing licence holders would receive priority consideration for equivalent licences, allowing them to continue their operations subject to the requirements of the new legislation.
Another major provision of the proposed legislation is the government’s authority to require mining companies to process more of their minerals within Ghana before exporting them.
The bill would empower the government to introduce regulations mandating local mineral processing and impose future restrictions or bans on exports of unprocessed mineral concentrates.
The proposed measures are intended to encourage investment in domestic processing facilities, increase value addition and expand economic opportunities beyond the extraction of raw materials.
By processing more minerals locally, Ghana could potentially retain a greater share of the value generated by its mining industry, while creating opportunities for employment, industrial development and related businesses.
However, the draft does not specify the precise timeline or the extent of the potential restrictions, leaving these details to future government regulations.
