Member of Parliament for Suame and Legal Counsel for the Minority, John Darko, has raised concerns that government’s decision to cap mining lease periods at 20 years could discoura
The report indicates that member of Parliament for Suame and Legal Counsel for the Minority, John Darko, has raised concerns that the government’s decision to cap mining lease periods at 20 years could discourage investment in Ghana’s mining sector.
It further notes that he says while reforms in the mining sector are necessary, authorities must be mindful of measures that could affect investor confidence.
Speaking on JoyNews’ The Pulse, Mr Darko stated mining is a capital-intensive venture, and investors require sufficient time to recover the huge resources committed to their operations.
“This has been debated for a while. Some believe that because we need to attract investment into the mining sector, capping the tenure to 20 years will be a problem,” he said.
The Lands and Natural Resources Minister, Emmanuel Armah-Kofi Buah, recently announced reforms to the mining sector, including a review of mining lease tenure from 30 years to 20 years.
Mr Darko acknowledged the need to review the country’s mining laws but argued that shortening lease periods could make Ghana less competitive at a time when other countries in the sub-region are seeking to attract mining investments.
“Mining is a very, very expensive venture. For anybody to bring in the millions of dollars that is needed, they should be assured of a long-term period of recouping their investment,” he stated.
He noted that countries such as Benin and Côte d’Ivoire are becoming increasingly attractive destinations for investors and warned that Ghana must avoid policies that could weaken its competitive advantage.
According to him, Ghana’s peace and long history in mining remain key strengths, but the country must complement these advantages with policies that encourage investment.
“What goes for us really is our history of mining and the assurance that when it comes to Ghana, you’re likely to get a good deal. We don’t have to bank only on our goodwill,” he added.
Mr Darko suggested that if government proceeds with the 20-year lease cap, it must introduce additional incentives to reassure investors and maintain Ghana’s position as a leading mining destination.
He emphasised that mining reforms should focus not only on regulating the sector but also on ensuring value addition, responsible mining practices, and sustainable economic benefits for the country.
