Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, has reiterated that the period of automatic extensions of mining leases will be a thing of the past.
Instead, lease extensions will be granted based on a company’s merit and track record.
In a sideline interview during his working visit to mining companies in Tarkwa Nsueam Municipality of the Western Region, Minister urged mining companies to uphold their end of the bargain by honoring commitments to the government and the people, facilitating smoother decision-making at the ministry.
The Minister’s one-day working visit aimed to assess mining company operations and address concerns. At Goldfields Tarkwa, his first stop, he engaged with the top management team and conducted a site visit.
“Mining lease extensions will be based on records and commitments, considering factors such as technical and financial investments, corporate social responsibility fulfillment, community and national benefits, and tax compliance. Renewals won’t be automatic; each case will be evaluated on its merits.” He mentioned.
He encouraged mining firms to honor their commitments, fostering a more collaborative relationship with the government and citizens.
“The goal is to ensure everyone upholds their end of the bargain. Mining companies must honor their commitments to Ghana and its people, and we’ll do our part. This way, when we discuss lease extensions or rectifications, it will be a smoother process. Ghanaians deserve to be respected, and once we establish this mutual understanding, we’ll be on the same page.” He noted.
Later, Michael Eden Akafia, Vice President of External Affairs at Goldfields and President of the Ghana Chamber of Mines, urged the Minister to consider extending the stability agreement period from 5 to 15 years for the mining sector, particularly as the Ministry prepares to Reform the process of the Minerals and Mining Act.
“We propose extending the stabilization period to up to 15 years, allowing flexibility depending on project needs.
This is crucial given the long-term nature of the mining industry. Notably, petroleum agreements in the oil and gas sector already include stabilization clauses.
By comparison, mining warrants similar consideration, especially given its inherent risks. We’ll provide more detailed concerns during the Minerals and Mining Act reform preparations.”
