In a major policy shift unveiled in late July, Ghana—Africa’s top gold producer—is implementing its most significant mining law reforms in nearly two decades. The overhaul will shorten the maximum term of mining leases (currently 30 years), eliminate automatic renewals for companies that fail to meet environmental, social, or production standards, and introduce a three-tier licensing system that adds a new medium-scale category between artisanal and large-scale miners. This streamlined structure aims to better match oversight to operating scale and ensure more responsive governance.
Perhaps the most transformative change is the end of centralized development agreements. Instead, mining companies in future contracts must dedicate a fixed percentage of their gross mineral sales directly to local community development. This reform is designed to address longstanding grievances from communities that have historically benefited little from mining activity. Crucially, Ghana has emphasized that these reforms will apply only to new contracts, preserving the sanctity of existing agreements and reducing investor risk.
These reforms reflect a broader recalibration of how legitimacy and social license are earned in the mining sector. By linking license stability to performance and tying economic benefits to communities directly affected, Ghana strengthens both accountability and trust. If implemented successfully, the new framework could enhance governance, motivate responsible operations, and reinforce the social legitimacy of mining as both an economic driver and a source of sustainable development.
Issue Profile – Ghana Mining Law Reform
Lead Actor: Government of Ghana, Ministry of Lands & Natural Resources
Focus: Overhaul of mining licensing regime and mandatory local revenue sharing
Update (Aug 2025): Reform package introduces shorter leases, a new medium-scale category, and direct allocation of mineral revenues to communities
Strategic Significance: Strengthens governance and social license by linking license stability to performance and ensuring local development benefits