Deputy Minister for Lands and Natural Resources Alhaji Yusif Sulemana has announced that Cabinet has endorsed a comprehensive review of the Minerals and Mining Act, 2006 (Act 703), as part of reforms to modernise regulation, strengthen state oversight and curb speculative land-holding in the mining sector.

Speaking at the commissioning of the Minerals Commission’s new regional headquarters in Kumasi, Alhaji Sulemana said the proposed reforms would reduce the maximum duration of mining leases from 30 years to 20 years, reflecting the fact that most modern mines are exhausted within a decade.

The reforms will also abolish development agreements that, according to the Deputy Minister, shield shell companies from statutory taxes and levies.

Reconnaissance and prospecting licences will also be replaced with a single exploration licence capped at five years.

“This commissioning comes at a time of far-reaching regulatory transformation, and let me announce to you that the Cabinet of this country, headed by the President, has endorsed a comprehensive review of the Minerals and Mining Act 2006 Act 703,” Alhaji Sulemana stated.

He said the current licensing structure allows companies to hold concessions for extended periods without developing them, potentially preventing other investors from accessing the land.

“You have instances where companies go in for reconnaissance, take a long time, go back for prospecting, and hold onto concessions indefinitely, keeping away potential investors,” Alhaji Sulemana said.

He said consolidating the licensing phase would promote transparency, accountability and sustainable resource management.

The new Kumasi facility also marks the end of more than four decades of centralised Minerals Commission operations in Accra, which required stakeholders from other parts of the country to travel to the capital for administrative services.

The regional office will serve as the Minerals Commission’s main regulatory hub for the middle belt, covering the Ashanti, Bono and Ahafo regions.

Alhaji Sulemana said the Ashanti Region was chosen because of its critical contribution to national gold production and the presence of major mining companies including Newmont, AngloGold Ashanti and Gold Fields.

Ashanti Regional Minister Dr Frank Amoakohene said illegal mining remained a major challenge, revealing that 23 people, including 11 children, had died in mining pits in the region this year.

He said National Security and the Ministry of Lands and Natural Resources had begun a reclamation exercise to recover abandoned mining pits in affected areas.

Minerals Commission Chief Executive Officer Isaac A. Tandoh said the new regional headquarters was part of efforts to decentralise the Commission’s operations and improve service delivery to stakeholders.