Ghana has announced major reforms to its mining laws, aiming to boost transparency and ensure local communities directly benefit from mineral wealth.

The proposed changes, outlined by Lands and Natural Resources Minister Emmanuel Armah Kofi Buah, mark the country’s most significant mining overhaul in nearly two decades.

Under the reforms, mining leases will have shorter durations and companies will lose the right to automatic licence renewals if they fail to meet key obligations.

For the first time, firms will be required to share a fixed percentage of gross mineral sales with host communities, replacing past development agreements that directed funds only to central authorities.

Buah clarified that the reforms, now 85% complete, will apply only to new contracts and will not affect existing mining agreements.

“We don’t do retrospective laws,” he stated during a presentation in Accra, distinguishing Ghana’s approach from Mali and Burkina Faso, where reforms have been applied retroactively.

Ghana, Africa’s top gold producer, expects gold output to reach 5.1 million ounces this year, with global giants like Newmont, AngloGold Ashanti, and Gold Fields among active operators.

In addition to gold, Ghana exports bauxite and manganese and is preparing to enter the lithium market.

The proposed legislation introduces a new medium-scale mining licence to bridge the gap between multinational firms and artisanal miners.

Another key proposal is the reduction or elimination of long-term stability agreements, limiting tax and regulatory protections to capital recovery periods.

The reforms aim to strike a balance between attracting investment and addressing the long-standing grievances of mining-affected communities.

If enacted, the changes would align Ghana with a broader West African trend of leveraging mining reforms to capture greater national and local value from soaring global commodity prices.

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