Ghana’s Chief Executive of the Minerals Commission, Isaac Tandoh, has announced sweeping reforms aimed at increasing Ghanaian ownership and control in the country’s mining sector, saying employment alone is no longer enough.
Speaking at the maiden Mining Local Content Summit in Takoradi, Mr Tandoh said the changes were designed to correct what he described as decades of imbalance in the ownership of the nation’s mineral resources.
“Employment is not the same as ownership. Labour is not the same as control,” he told participants. “Our people are working in the mines, agreed, but do they own the mines?”
The two-day summit, attended by President John Dramani Mahama and other senior government officials, focused on strengthening local content and indigenisation in the mining industry.
Licences revoked
Among the measures announced is the revocation of more than 300 small-scale mining licences acquired through irregular means.
Mr Tandoh said District Mining Committees would now play a mandatory role in reviewing and recommending all small-scale licence applications before final approval, in an effort to tighten oversight and improve accountability.
He also confirmed that the Minerals and Mining Act (Act 703) and the 2014 Minerals and Mining Policy have been comprehensively reviewed. New legislative instruments have been introduced to close legal loopholes.
Legislative Instrument 2462, which previously permitted mining in forest reserves, has been revoked.
New licensing regime
As part of the reforms, a new medium-scale mining licence category has been introduced to bridge the gap between small- and large-scale operations and create more opportunities for Ghanaian operators.
Mr Tandoh also announced the phasing out of development agreements, citing what he described as systemic abuse. A new, more flexible royalty regime is expected to allow Ghana to capture greater value during periods of rising gold prices.
Local content provisions, he said, will now be embedded in every mining agreement, procurement decision and employment policy.
Crackdown on ‘fronting’
A key focus of the reforms is the elimination of “fronting” – an illegal practice in which foreign entities use Ghanaian nominees to acquire mineral rights.
Mr Tandoh linked the practice to the growth of illegal mining, commonly known as galamsey, and warned those involved to desist.
“To our Ghanaian brothers and sisters who lend their names to such arrangements: open your eyes,” he said. “You are not empowering yourself; you are enabling the disempowerment of your own people.”
He stressed that the reforms were not intended to punish investors but to ensure that Ghanaians benefit equitably from the country’s mineral wealth.
Digital transformation
The Minerals Commission is also embarking on a digital transformation drive to improve transparency and efficiency in the regulation of the mining sector, Mr Tandoh said.
He pledged that the Commission would enforce the law “without fear or favour” while working with investors who see Ghana as “a partner in progress”.
Officials say the reforms mark a significant shift in policy, aimed at strengthening indigenous participation and ensuring that mining revenues contribute to sustainable national development.
