Parliament has ratified six mining lease agreements between the government and six mining firms to bring tremendous socio-economic benefits to the communities in the respective areas and the country as a whole.
The companies are mining firms incorporated under the laws of Ghana.
First is the lease agreement between the government, represented by the Ministry of Finance and Golden Star (Wassa) Limited for the mining of gold in Wassa Akyempin (63.000 km2) in the Wassa East District in the Western Region.
The second is the mining lease agreement between the government and Maripoma Mining Services Limited for the mining of gold and other minerals in Zongoiri (63.000 km2) in the Bawku West District of the Upper East Region.
The third is the mining lease agreement between the government and Perseus Mining (Ghana) Limited for the mining of gold in Nanankaw Agyakusu (55.44 km2) in the Upper Denkyira West District in the Central Region and Wassa Amenfi East District in the Western Region.
The fourth is the mining lease agreement between the government and Perseus Mining (Ghana) Limited for the mining of gold in Ayanfuri (51.45 km2) in the Upper Denkyira West District in the Central Region and Wassa Amenfi East District in the Western Region.
The fifth is the mining lease agreement between the government and Damang Gold Mine Limited for the mining of gold and other minerals in Damang (37.83 km2) in the Prestea Huni-Valley District in the Western Region.
The mining lease agreement between the government and Damang Gold Mine Limited for the mining of gold in Lima South (33.58 km2) in the Prestea-Huni-Valley District in the Western Region is the sixth.
The agreements were presented to Parliament on Friday, July 26 and 29, this year by the Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah.
They were referred to the Committee on Lands and Natural Resources for consideration and report.
Article 268 (1) of the Constitution and section 5(4) of the Minerals and Mining Act, 2006 (Act 703) stipulate that all transactions, contracts or undertakings involving the grant of a right or concession for the exploitation of any mineral in Ghana are subject to ratification by Parliament.
The requirement safeguards national interest by subjecting the management of Ghana’s natural resources to legislative scrutiny.
Lease grants
Per the report of the committee, the Gold Star (Wassa) Limited was granted its mining lease on January 26, 2022, for a term of 25 years ending on January 24, 2047, while Maripoma Mining Services Limited’s mining lease was granted on March 12, 2024, for a term of 25 years ending on March 11, 2049.
Perseus Mining (Ghana) Limited’s lease in respect of Damang was granted on June 15, 2026 for a term of 25 years ending on June 14, 2051, while the lease in respect of Lima South was granted on June 15, 2026 for a period of 25 years ending on June 14, 2046.
The committee noted that prior to the grant of the leases, the Minerals Commission conducted a thorough review of the relevant feasibility reports and satisfied itself that the companies had the technical and financial capacity to undertake the intended mining operations.
It said the companies also showed that they possessed the requisite human resource capacity and know-how to successfully undertake the mining operations.
Leases affecting forest reserves
According to the report, the committee expressed concern that forest reserves were included in some of the mining leases that were granted in accordance with the law prevailing at the time.
The committee noted, however, that the lease agreements made express provisions, prohibiting the companies from conducting any operations “within 100 metres of any forest reserve, river, stream, building, installation, reservoir, dam, public road, railway or area appropriated for a railway” without the prior written consent of the Lands Minister.
The report said the representatives of the Minerals Commission explained that the grant of a mining lease alone did not authorise actual mining operations within a forest reserve.
“Companies must secure entry permits, whose requirements help to enforce operational restrictions,” it said.
The committee, therefore, recommended that the commission and relevant regulatory authorities strictly enforce all statutory, legal and environmental safeguards to ensure the full protection of the forest reserves affected by minerals rights.
Minority’s opposition
However, the Minority Caucus criticised the government for allegedly failing to renegotiate the state’s equity stake in the Damang Mine from 10 per cent to at least 30 per cent.
The Caucus said such a move would have secured greater value and increased revenue for the country.
Speaking on behalf of the Caucus at a press conference in Parliament last Friday, the Ranking Member on the Lands and Natural Resources Committee, Kwaku Ampratwum-Sarpong, said Parliament should have examined the full terms of the transaction and all relevant material information thoroughly before approving the agreement.
“Damang is not an ordinary mine. It is one of Ghana’s important mining assets, and its transfer has attracted significant national interest,” he said.
