Ghana Proposes Significant Mining Law Reforms that Could Adversely Impact Investors

Overview

Ghana plans to implement significant reforms to its mining legislation, including its Minerals and Mining Act, 2006 (Act 703).  The proposed reforms come in response to mounting fiscal pressures and surging gold prices.  The proposed changes are expected to be presented to parliament by March 2026, and would significantly increase the government’s share of gold revenues, tighten control over natural resources, and address the government’s concerns over mining stability agreements and development agreements.  Ghana has already clawed back certain mining permissions, revoking Legislative Instrument 2462 in December 2025, which had previously permitted the President to authorize mining activities within Ghana’s forest reserves.  The latest proposed reforms stand to further negatively impact foreign investors, including owners and operators of Ghanaian mining projects.  

The Proposed Legislation

The Ministry of Lands and Natural Resources and the Minerals Commission are the primary regulatory bodies overseeing Ghana’s mining industry.  The Ghanian government plans to introduce three key changes to its mining policy that would substantially alter how gold mining is regulated in the country:

1. Increased Royalties: According to news sources, mining royalties are set to increase substantially, from the current range of 3–5% to 9–12%, with rates to be indexed to global gold prices. Royalties will start at 9% and climb to 12% if gold prices reach $4,500 per ounce or higher.  This adjustment is intended to capture a greater portion of the sector’s value for the State.  Large-scale mining operations in Ghana already face a 5% royalty on gross revenue and a 35% corporate income tax.
2. Review of Stability Agreements: The government plans to reassess stability agreements, which presently last for up to 15 years under Article 48 of Act 703 and shield mining leaseholders from adverse impacts of new legislation, fiscal changes, or rules governing duties, taxes, royalties, exchange controls, and capital movements. The proposed amendments will “[r]educe the upper limit of the stability period . . . to any period not exceeding 5 years” and remove changes to labour, environmental, and health and safety laws from the stability agreement’s scope of protection.  Ghana also proposes implementing “a standard stability agreement” whose “contents should be prescribed in regulations.”     
3. Elimination of Mining Development Agreements: Under Article 49 of Act 703, existing development agreements for proposed investments that exceed UD$ 500M typically contain clauses pertaining to proposed mineral rights and operations, stability agreements, and dispute resolution procedures. The proposed amendments “recommend[] that Development Agreements should be abolished.”  According to news articles, Ghana plans to enact this measure in response to companies allegedly failing to fulfill their development commitments.

Proponents argue that Ghana’s increased experience in managing the mining sector warrants greater regulatory flexibility in order to assert national interest, while industry experts caution that stability clauses and development agreements are vital for maintaining the country’s appeal to foreign investment, encouraging expansion by existing miners and promoting external financing. 

What Investors Should Expect

Ghana’s proposed reforms are expected to be introduced in parliament by March 2026.  If the proposed reforms are enacted, mining companies operating in Ghana will have to prepare for substantially higher costs of doing business.  The near-doubling of royalty rates, combined with the existing 35% corporate income tax on large-scale mining operations, could significantly impact the viability of current and planned gold mining projects.  For companies that relied on stabilization clauses or development agreements, the reforms raise the risk of forced renegotiation, breach of contract, and potential disputes.

Conclusion

Ghana’s reforms are in line with the broader trend among African resource-rich nations—including Mali, the Democratic Republic of Congo, Côte d’Ivoire, Kenya, Zambia, and Tanzania—which have recently revised or are in the process of revising their mining laws amid rising global demand for gold and critical minerals.  Given Ghana’s significant fiscal deficit, we anticipate there is likely to be strong political will to expeditiously advance the reforms.  Mining companies should monitor developments closely, assess anticipated exposure, and prepare for possible renegotiation or disputes in what could become a significantly altered regulatory landscape.

Additional Contributors: Maryssa Ziegler and Erdem Evranos