Cutting mining leases to 15 years will scare investors

The Ghana Chamber of Mines has cautioned government against proposals to slash the tenure of mining leases from 30 years to 15 years, warning that the move could stifle investment, weaken community development, and erode Ghana’s competitiveness in the global mining industry.

Presenting the Chamber’s position paper on the proposed amendments to the Minerals and Mining Act (Act 703) at a press briefing on Monday, September 1, 2025, Chief Executive Officer Ing. Dr. Kenneth Ashigbey argued that mining ventures are long-term and capital-intensive, often requiring over a decade of preparatory work before production begins.

“Reducing the tenure of mining leases to 15 years will curtail the available time for recouping investments, lower a project’s net present value, and compromise the viability of deep-seated or marginal ore bodies,” Dr. Ashigbey stated.

He warned that shorter leases would discourage near-mine exploration, encourage “high-grading” of deposits, sterilize marginal ore bodies, and undermine long-term corporate social investments in host communities.

In comparison with other jurisdictions such as Côte d’Ivoire, Burkina Faso, and Nigeria, Dr. Ashigbey said Ghana would lose its competitive edge if leases were capped rather than tied to project economics.

Instead, he urged policymakers to retain the current 30-year tenure under Act 703, coupled with flexible renewal options, stressing that this was essential to sustain investor confidence, secure stable revenue for the state, and promote socio-economic development in mining areas.

“Mining is inherently high-risk and long-term. Any legal framework that shortens the investment horizon will only elevate Ghana’s tax burden relative to peers and deter new investments,” the CEO cautioned.

The Chamber’s position comes amid a wider review of Ghana’s mining legislation, which also proposes reducing stability agreements from 15 to 5 years, abolishing development agreements for large-scale projects, and shortening prospecting licence durations.

While welcoming reforms such as the introduction of a medium-scale mining tier, the Chamber maintained that lease tenure and stability agreements remain the foundation of mining investment decisions.

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