Ghana to shorten permitting, boost communities

Ghana, the top gold producer in Africa and sixth globally, has introduced a major overhaul of its mining legislation aimed at shortening permit timelines and boosting revenue for host communities.

The changes to the Minerals and Mining Act mark the most substantial reforms since 2006 and are designed to attract new investment while addressing long-standing grievances over environmental oversight and local development. Ghana’s reforms are part of a broader recalibration of mining policy in West Africa, although its reforms are more investor-friendly than under the juntas in Mali, Burkina Faso and Niger.

Under Ghana’s proposed rules announced Wednesday by a government minister, new prospecting licences will carry fixed expiry dates and will no longer be eligible for automatic renewal. Mining leases, which previously extended for 30 years, will now be limited to shorter periods determined through agreement between companies and the government.

Existing contracts will not be affected, avoiding the retroactive uncertainty seen in other West African jurisdictions. The country is also phasing out blanket stability agreements that shield mining companies from fiscal regime changes, limiting such protections only to the payback period of capital investment.

Local benefits

In a significant shift, Accra will now require companies to channel a fixed portion of gross mineral revenues directly to communities near mine sites. Previously, development agreements routed funds centrally through the capital.

Minister of Lands and Natural Resources Emmanuel Armah Kofi Buah said in a presentation the new system is intended to foster greater transparency and accountability in how mining profits benefit local residents.

The reforms also introduce a new category of medium-scale mining permits aimed at bridging the gap between artisanal and industrial operations. Government officials say the goal is to formalize informal activity and increase state oversight in a sector that remains Ghana’s top foreign exchange earner.

Gold output is expected to exceed 5.1 million oz. this year, while lithium and other battery metals are emerging as strategic priorities.

Projects advance

The policy shift comes as exploration and development work accelerates across Ghana. Newcore Gold (TSXV: NCAU; US-OTC: NCAUF) has reported several near-surface, high-grade gold hits at its Enchi project in the southwest, and said it plans further expansion drilling to upgrade resources.

Atlantic Lithium (ASX: A11; LSE: ALL; US-OTC: ALLIF) continues to advance its Ewoyaa lithium project in the Central Region, which could become Ghana’s first commercial lithium mine.

At the same time, several of the country’s large-scale producers are expanding or streamlining operations. Asante Gold (CSE: ASE; US-OTC: ASGOF; FSE: 1A9) is ramping up at the Bibiani and Chirano gold mines, while Newmont (TSX: NGT; NYSE: NEM) continues to operate its Ahafo and Akyem mines, which together accounted for more than 900,000 oz. of gold production in 2023.

AngloGold Ashanti (JSE: ANG; NYSE: AU) and Gold Fields (JSE: GFI; NYSE: GFI) have also invested heavily in the Tarkwa and Obuasi belts, although a proposed joint venture between the two was shelved last year.

Medium-scale gains

Mid-tier and junior miners may benefit most from the reformed permitting regime. Midlands Minerals (TSXV: MEX-H) has consolidated a 160-sq.-km land package along the Asankrangwa gold belt, and could find easier pathways to production under the new medium-scale licence category.

Meanwhile, Perseus Mining (ASX: PRU; TSX: PRU) is advancing the Namdini project, which hosts 123.7 million proven and probable tonnes grading 1.04 grams gold per tonne for 4.15 million oz. contained metal, according to a March 2023 update.

While some neighbouring countries have introduced windfall taxes or forced equity stakes, Ghana appears to be charting a path that balances fiscal discipline with stronger environmental and social enforcement. By tightening licence conditions without upending existing contracts, the country is betting on remaining one of Africa’s more stable destinations for mining capital.