The Ghana Chamber of Mines has strongly cautioned the government against proposals to cut the tenure of mining leases from 30 years to 15 years, warning that such a move could jeopardize investment flows, reduce long-term community benefits, and erode Ghana’s competitiveness in the global mining sector.

Delivering its position paper on proposed amendments to the Minerals and Mining Act (Act 703) at a press briefing on Monday, September 1, 2025, the Chief Executive Officer (CEO) of the Chamber, Ing. Dr. Kenneth Ashigbey, argued that mining projects are long-term, capital-intensive ventures that often require more than a decade of preparatory work before production begins.

A shorter lease, he noted, would leave companies with little time to recover costs and generate fair returns

“Reducing the tenure of mining leases to 15 years will curtail the available time for recouping investments, lower a project’s net present value, and compromise the viability of deep-seated or marginal ore bodies,” the CEO of the Chamber stated.

Dr. Ashigbey also warned that a shortened lease period would discourage near-mine exploration, encourage “high-grading” of deposits, sterilize marginal ore bodies, and limit long-term corporate social investments in host communities.

In comparative terms, he noted that Ghana would become less attractive to investors than peer jurisdictions such as Côte d’Ivoire, Burkina Faso, and Nigeria, where mining leases are tied to project economics rather than capped at a shorter term.

Instead, he urged policymakers to maintain the current 30-year tenure provided under Act 703, alongside flexible renewal arrangements. This, he argued, is crucial for sustaining investor confidence, ensuring stable revenue for government, and supporting long-term socio-economic development in mining communities.

“Mining is inherently high-risk and long-term. Any legal framework that shortens the investment horizon will only elevate Ghana’s tax burden relative to peers and deter new investments,” the CEO of the Chamber cautioned

The Chamber’s call comes amid a broader review of Ghana’s mining legislation, which also includes proposals to reduce stability agreements from 15 to 5 years, abolish development agreements for large-scale projects, and shorten prospecting licence durations.

While the industry body welcomed aspects of the review such as the creation of a medium-scale mining tier, it emphasized that lease tenure and stability agreements remain the bedrock of mining investment decisions.