Minerals and Mining Act, 2006 (Act 703)

All minerals in their natural state in specified areas of Ghana belong to the Republic and are vested in the President in trust for the people of Ghana.

The President may acquire land, or authorise its occupation and use, when the land is needed for developing or using a mineral resource.

Land in the country may be included in an application for a mineral right, except land already subject to an existing mineral right for that mineral or land reserved from mineral rights.

The Minister may use an Executive Instrument to reserve land from becoming subject to applications for mineral rights, if the land is not already subject to a mineral right.

The Minister may handle mineral rights, but must determine the land covered and give written reasons if an application is refused or only partly granted. Some mineral-right transactions also need Parliament’s ratification, unless Parliament exempts a class of transactions by a two-thirds resolution.

Minerals generally cannot be exported, sold, or otherwise disposed of without a Minister-granted licence.

The Minister has the right to take pre-emption over specified minerals and their refined or treated products, and the Government may appoint a statutory body to act as its agent by Executive Instrument.

The section defines how land is divided into geometric sections and blocks, and how blocks are identified on Commission-held plans.

Mining-related activities on land in Ghana generally require a mineral right.

A mineral right cannot be granted to a person unless the person is a body incorporated under specified laws, subject to any contrary provision in the Act.

An applicant for a mineral right must file the application with the Minerals Commission in the prescribed form and include a statement with specified business and workforce details.

The Commission must send its recommendation on a mineral right application to the Minister within 90 days of receiving the application, unless delay is caused by the applicant or by a request for further information from the applicant.

The Minister must decide on a mineral-right application within 60 days after the Commission’s recommendation and notify the applicant in writing; the applicant must accept approval in writing within 60 days, or the approval lapses.

The Minister must approve mineral-right transfers in writing, may not unreasonably withhold approval, and must give reasons if no written decision is made within 30 days and the applicant asks for them.

A mineral-right holder who discovers an unlisted mineral must notify the Commission and Geological Survey Department in writing within 30 days, and may apply to amend the right to add or remove minerals.

A holder of a mineral right must appoint a qualified and experienced manager at all times and must notify the Inspectorate Division in writing when a manager is appointed or changed.

A mineral-right holder may use water on the land for mining operations, but only if the needed approvals or licences are obtained.

A holder of a mineral right must get the required approvals and permits from the Forestry Commission and the Environmental Protection Agency before starting activities or operations, and must follow applicable environmental regulations and other laws related to mineral exploitation.

A mineral right holder must keep prescribed records in Ghana, allow Commission inspection at a reasonable time, and provide reports and geological information to the Commission, the Geological Survey Department, and other prescribed persons.

Information obtained under the listed sections is confidential, but the public may inspect and copy the records on payment of the prescribed fee, and disclosures are allowed in specific cases.

Copyright in certain documents, records, and information passes to and resides with the Republic once they become available for public inspection.

An applicant for a mineral right must pay a prescribed fee.

A holder of a mineral right must pay annual ground rent as prescribed.

A holder of a mineral right must pay an annual mineral right fee to the Commission.

Mining lease, restricted mining lease, and small scale mining licence holders must pay royalties on minerals obtained from mining operations, with the royalty rate limited to between 3% and 6% of total revenue.

A fee, royalty, or other payment due for a mineral right or under this Act is treated as a debt owed to the Republic and can be recovered in Court.

Disputes about mineral rights should first be handled through mutual discussion, and some disputes may go to arbitration if they are not settled within 30 days or a longer agreed period.

A mining lease holder is entitled to capitalize certain reconnaissance and prospecting expenditure if the Minister approves it on the Commission’s advice and the holder starts developing a commercial find.

A holder of a mineral right may be granted customs, tax, and quota benefits for mineral operations and expatriate personnel.

A mining lease holder may be allowed to keep some foreign exchange earnings in an account for mining inputs, and may also be allowed to keep at least 25% for listed uses; the holder is also guaranteed free transferability of convertible currency, subject to the Act.

The Minister may grant a reconnaissance licence if a qualified person applies and the Commission recommends it.

A reconnaissance licence gives the holder exclusive rights to carry out reconnaissance and related incidental activities in the reconnaissance area, but the holder must not drill or excavate.

A holder of a reconnaissance licence may apply to the Minister for an extension before the licence expires, and the Minister must extend it if the applicant has materially complied with the Act.

The Minister may grant a prospecting licence to a qualified applicant, and must grant it within 60 days if the subsection (4) conditions are met.

A prospecting-licence holder may apply to the Minister for an extension, and the Minister must grant it if the stated conditions are met.

A prospecting licence cannot be granted unless the proposed mineral operations programme is suitable in the Minister’s reasonable opinion. The licence holder must notify the Minister of proposed amendments, and the Minister may limit or suspend the holder’s obligation to carry on prospecting operations on application.

The holder of a prospecting licence may enter the licensed land and must follow several operating, reporting, record-keeping, and cleanup requirements.

A prospecting licence holder must surrender at least half of the licence blocks by the end of the initial term, subject to minimum-area and layout limits; the holder may seek ministerial relief, and the Minister may exempt the holder for up to 12 months.

A holder of a reconnaissance or prospecting licence may apply for one or more mining leases before the licence expires, and the Minister must grant the lease within 60 days if the Act’s conditions are met and the Commission recommends it.

A person may apply for a mining lease in the prescribed form, and the Minister may grant it if the application is duly made and the Commission recommends it.

A mining lease must start with a 30-year term unless a shorter period is agreed with the applicant, and the lease area must be at least one block and no more than 300 contiguous blocks.

The Minister cannot reject a mining lease application unless the applicant was told the concerns in writing and given a chance to amend, or, for default, given notice and time to fix it.

If a mineral right is for mining or exploitation, the Government must take a 10% free carried interest in the mineral operations. The Government may also agree with the holder on additional participation.

A mining lease holder may apply to the Minister to extend the lease, but the application must be timely and include a proposed mineral operations programme.

A mining lease holder must tell the Minister about intended amendments to the mining operations programme.

A mining lease authorises the holder, and authorised agents or employees, to enter the lease land and carry out specified mining-related activities, subject to the Act and regulations.

A mineral-right holder may apply to merge or enlarge contiguous mineral rights, and the Minister may approve enlargement if satisfied the extra area is needed for the holder’s operations.

The Minister may enter a stability agreement with a mining lease holder, but it must be ratified by Parliament.

The Minister may enter into a development agreement under a mining lease, on the Commission’s advice, if the person’s proposed investment exceeds US$500 million.

A mining lease holder must submit to the Commission a detailed programme for recruiting and training Ghanaian personnel, and this programme is a condition for the grant of the mining lease.

A mining lease holder must give the Minister advance notice before suspending production, explain why, and may need to notify within 14 days if advance notice was impossible for reasons beyond control.

A person cannot become controller of a mining company unless they first give written notice to the Minister and the Minister does not object within two months.

The Minister must issue a written objection notice in specified controller situations and may ask for information or documents before deciding.

A person commits an offence if they fail to give the required notice or become a controller too late under section 52, or if they become or remain a controller after a notice of objection under section 53.

The Minister and the Court can restrict, sell, and transfer certain shares in specified cases, and share transfers and voting rights may be blocked while restrictions apply.

A person must notify the Minister in writing before, or within 14 days after, ceasing to be a controller of the mining company.

A mining company must give the Minister written notice when a person becomes or stops being a controller of the company.

The Minister may appoint investigators into a mining company’s ownership or control, and certain company insiders must provide documents, attend, and assist when required.

Persons or companies that provide prescribed services to a mineral-right holder and are registered with the Commission may be granted a concession.

The Minister may require a mining company to issue a special share to the Republic. The share has specific default rights and limits, and a company can be fined if it does not comply with a notice for two months.

Sections 51 to 60 still apply and must be carried out even if other company-law documents or agreements say otherwise, except for a company–Republic agreement about applying those sections.

Radio-active minerals are subject to the Act’s mineral rules, and anyone who discovers one must notify the Commission and the Geological Survey Department immediately.

A licence or lease holder under section 62 must give the Commission and the Geological Survey Department a written true report each month, within the first week, about the previous month’s prospecting and mining operations for radioactive minerals.

A person must not export a radio-active mineral unless it is done under a permit from the Minister.

Breaking sections 62 to 64 or getting a permit by false statement is an offence, punishable on summary conviction by a fine, imprisonment up to two years, or both; the court must also order forfeiture of any radioactive mineral obtained.

Certain authorized officers may enter, search, arrest, and seize items without a warrant for mineral-law enforcement purposes.

A mineral-right holder who wants to surrender land must apply to the Minister for a certificate of surrender at least two months before the intended surrender date.

The Minister may suspend or cancel a mineral right for specified holder defaults or misconduct, but must first give notice and allow time to remedy the breach or show cause.

The Minister may suspend or cancel a mining lease or restricted mining lease if the holder has failed, without good cause, for two years or more to carry out the holder’s programme or mineral operations.

After a mineral right ends, the former holder (or certain entitled persons) may remove the mining plant within the stated time, but if it is not removed after ministerial notice it can vest in the Republic.

When a mineral right ends, the former holder must give specified records, plans, maps, and related documents to the Minister or as directed. A person who does not deliver required documents within 30 days after being called on by the Minister commits an offence.

Surface rights are limited by the Act, an enactment, and ministerial limits; certain land users keep grazing/cultivation rights if they do not interfere with mining.

Landowners or lawful occupiers may claim compensation for disturbance caused by a mineral right, and the Minister can determine the amount if the parties do not agree.

This section says an owner or lawful occupier may receive compensation for specified land-related losses, but not for mineral value or claims that cannot be assessed in money.

Some landowners or lawful occupiers affected by a mineral right cannot go to the High Court for a compensation determination unless they are dissatisfied with the compensation offered or set by the Minister. The person entitled to compensation, or the mineral right holder, may seek High Court review of the Minister’s determination, and the High Court acts with supervisory jurisdiction in those proceedings.

A person may search, prospect for, or mine industrial minerals only under the stated licence or lease conditions and subject to section 78.

The Minister may grant or amend certain restricted mining licences and leases, and may renew a restricted mining lease, subject to a maximum term of 15 years at a time.

A restricted licence or restricted mining lease cannot be granted to a non-citizen. The Minister may also cancel a mineral right, on the Commission’s recommendation, if the holder has made an arrangement that transfers the benefit of the right to a non-citizen.

A non-citizen may apply for an industrial mineral right if the proposed investment is at least US$10 million.

Certain landowners, lawful occupiers, local authorities, and mineral-right holders may prospect for and mine industrial minerals for specified on-site uses, if they do not harm another person’s mineral right.

This section says that Sections 82 to 98 apply only to small scale mining, while Section 99 applies to illegal small scale mining and other illegal mining.

Small scale mining for a mineral is not allowed unless there is a licence for that mining operation granted by the Minister for Mines or an officer the Minister authorises.

A small-scale mining licence cannot be granted unless the person is a Ghanaian citizen, at least 18 years old, and registered by the Commission’s office in a designated area.

A licence granted by the Minister must relate to the mineral named in the licence and follow the licence’s stated conditions, unless sections 82 to 99 provide otherwise.

A licence under section 82(1) lasts no more than five years at first issue and may be renewed when it expires; the Minister may set the renewal period and prescribe fees for small-scale mining licences.

A licence for small scale mining may cover only an area sized according to the number of blocks prescribed.

The Minister may revoke a licence if the licensee breaks licence terms or requirements, is convicted of certain minerals-related offences, or if revocation is in the public interest.

A licence under section 82(1) may be transferred only to a citizen and only with the Minister’s consent.

The Minister may, after consulting the Commission and if it is in the public interest, designate an area for small-scale mining and specify the mineral to be mined.

The Commission may set up a District Office in a mining area, and must appoint a District Officer to head it.

People who are engaged in, or want to do, small scale mining must register with the District Office in the area where they operate or plan to operate.

A Small Scale Mining Committee must be established in every designated area.

A person licensed under section 82 may win, mine, and produce minerals, and must do so using good mining practices, health and safety rules, and due regard for environmental protection.

If a licence is granted in a designated area to someone other than the landowner, the licensee must pay compensation to the owner for use of the land and any crop destruction.

A small-scale miner must not use explosives in the area of operation unless the Minister gives written permission based on the Commission’s recommendation.

A small-scale miner may buy mercury from an authorised mercury dealer, but only in quantities reasonably needed for the miner’s operations.

Non-Ghanaians and foreign companies must not provide mining support services for small-scale mining operations.

Sales of minerals by licensed small-scale miners, and shipments of rough diamonds to and from the country, are subject to rules made by the Minister.

A person may sell personal jewellery to an authorised dealer or another person, but gold artifacts and gold coins may be disposed of only to an authorised dealer.

This section makes several mining-related acts offences and sets fines, prison terms, seizure, forfeiture, and a ministerial allocation duty.

The Minerals Commission must exercise its statutory powers and supervise implementation of the Act and regulations under the Minister’s direction, and the Minister must get the Commission’s advice and recommendation before acting under the Act or regulations.

A division called the Inspectorate Division of the Commission is established in the Minerals Commission.

The head of the Inspectorate Division, or an authorized officer, may enter certain reconnaissance, prospecting, or mining areas and premises at reasonable times, but not dwelling houses.