Extracting minerals in the Republic of Ghana is regulated by both legislative & constitutional acts. Under the constitution of Ghana, all transactions, contracts & obligations connected to exploration & production of mineral resources in the Republic of Ghana must be endorsed the country’s parliament.
The MRC, the Republic of Ghana’s main mining regulator, is charged with regulating mining activities in the Republic of Ghana. Individuals or companies seeking to apply for a license authorizing extraction of mineral resources in the Republic of Ghana must submit their applications to it.
The EPA is another major regulator which is entrusted with regulating activities affecting the country’s environmental situation. This regulatory body is authorized to issue ecological permits.
Obtaining an exploration license in the Republic of Ghana provides the licensee with exclusive rights to explore for specific minerals & carry out other auxiliary activities. For this purpose, the licensee may build campsites or makeshift structures in the exploration area. It should be noted, though, that licensees do not have the right to drill or excavate.
Obtaining a license authorizing exploration activities in the Republic of Ghana entitles its holder to:
- mining activities
- drilling & excavation
- building campsites & makeshift structures
- engage in auxiliary activities
Obtaining a license authorizing extraction of mineral resources in the Republic of Ghana entitles its holder to:
- carry out mining activities in the Republic of Ghana
- build installations & buildings for extraction, processing & transportation of minerals
- dispose of & extract minerals
- store & dispose of raw materials & waste
- carry out auxiliary operations
- carry out oil & gas exploration activities in the Republic of Ghana
With the exception of the GNPK, no companies or individuals have the right to engage in production & exploration of oil in the Republic of Ghana. The only exception is made for contracts for oil production whereby parties include individuals planning to carry out this activity, the state & the GNPK.
Contractors planning on exploring & producing oil & gas in Ghana can carry out their operations only within the authorized territory. Contractors have the right to export oil but Ghana’s government may require them to sell all or some of the oil at market prices in case of emergencies.
Mining on a small scale is an exclusive right of Ghanaian citizens. Therefore, a license authorizing small-scale mining in the Republic of Ghana isn’t available to everyone. Limited licenses, which include licenses for exploration & production of industrial minerals in the Republic of Ghana, are also granted mainly to Ghanaian citizens. However, aliens can also apply for a license authorizing extraction of industrial minerals in the Republic of Ghana, provided that their investment amounts to $10 mln or more.
Exporting of Minerals from the Republic of Ghana
Exporting of minerals from the Republic of Ghana does not require a license. Selling & disposing of minerals in the Republic of Ghana requires no license, either. Transportation of unprocessed diamonds to & from Ghana is performed as per established rules & regulations.
Within thirty days after being granted a mining lease, holders of mining rights in the Republic of Ghana can choose an area for mining activities. Prior to that, they must obtain the MRC’s approval & inform individuals interested in this territory.
Individuals intending to apply for a mining permit in the Republic of Ghana are entitled to change the boundaries of mining areas. However, doing so requires obtaining approval from the MRC & notifying parties interested in the area.
Taxation of Mining Activities in the Republic of Ghana
Normally, mining companies pay general corporate taxes. However, those seeking to register a mining company in the Republic of Ghana can enjoy these benefits:
- no customs duties
- no quotas on foreign personnel
The country’s government also encourages individuals or companies planning to extract mineral resources in the Republic of Ghana by concluding the so-called ‘stability agreement’ with them. According to this document, they are guaranteed not to be affected by any adverse changes in the economic or regulatory environment for a period that doesn’t exceed fifteen years
After obtaining a mining license in the Republic of Ghana, its holders are required to make royalty payments whose rate is established by Ghana’s government. Currently, the rate is set at five percent.
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