Stakeholders in Ghana’s mining industry are urging the government to guarantee security of tenure to encourage long-term investment in the sector.
According to Michael Akafia, Vice President for External Affairs at Goldfields, security of tenure is essential for investors to have confidence in the industry.
Akafia emphasized that mining is a capital-intensive, long-term, and high-risk industry that requires secure lease terms to attract investment. He cited examples of leading mining countries such as Australia, South Africa, and Canada, which allow long lease tenures that have helped build strong mining sectors.
Industry Concerns
Kenneth Ashigbey, CEO of the Ghana Chamber of Mines, also highlighted the importance of having mining laws that endure over time and contribute to the country’s economic stability. He cautioned against overly strict regulations, especially proposals to shorten lease terms.
The call for security of tenure comes amid the recent discovery of rare earth minerals in Ghana, which may require longer leases for development. The industry is seeking flexible laws supportive of long-term investments.
Government-Industry Collaboration
Nanja Sanja, Vice-Chairman of the Parliamentary Select Committee on Lands and Natural Resources, called for intensified collaboration between the government and mining companies to tackle the rising challenge of illegal mining. He also recognized the positive impact of corporate social responsibility initiatives within the mining sector.
Parliamentary Committee’s Visit
The Parliamentary Select Committee on Lands and Natural Resources visited several mining companies in the Western Region to better understand their operations, challenges, and contributions. The committee’s findings and recommendations are expected to inform policy decisions on the mining sector.
