GHANA’S REGULATORY FRAMEWORK AND SUSTAINABILITY IN THE MINING SECTOR

Abstract

The mining sector in Ghana predates independence and has, over the years, contributed significantly to Ghana’s socio-economic development through revenue generation, employment creation and increase in foreign direct investments. This can be attributed largely to the institution of comprehensive and attractive legal, fiscal and institutional frameworks by the Ghanaian Government, which have helped to attract investments into the mining industry. Nonetheless, lack of effective revenue mobilization, generous tax incentives, damaging environmental effects, and destruction of livelihoods of host communities, especially due to illegal mining activities, remain major challenges. Most of the problems associated with mining in Ghana are due mainly to a weak mining regulatory framework. Ghana has enacted the Minerals and Mining Act, 2006 (Act 703) (the Minerals and Mining Act), as amended in 2010, 2015, and 2019, as the basic law that regulates the mining sector, to improve the fiscal regime and to ensure effective regulation and sustainability of the mining industry. Even though Act 703 has been amended twice, and the Government has proposed a third amendment, previous amendments focused on “non-essential” areas, without special focus on the management of the environment for sustainability in the mining sector. Making the mining industry sustainable seems to have been addressed as an incidental. The Minerals and Mining Act has not undergone any major amendments to align it with regional frameworks, reflect international best practices and address sustainability challenges in the mining sector in Ghana. This paper reviews the key provisions of the Minerals and Mining Act, with a special focus on how the same facilitates environmental management for sustainability in the mining sector.