Mining license Applications in Ghana

Mining Licences In Ghana

a. Reconnaissance Licence Holder (RLH)

Subject to Act 703 and the Subordinate legislation listed above, a reconnaissance licence confers on the holder and a person, exclusive right to carry on reconnaissance in the reconnaissance area for the minerals to which the reconnaissance licence relates and to conduct other ancillary or incidental activity.

An applicant can also apply for restricted which is for a period of 12 months.

A holder of reconnaissance licence is not permitted to engage in drilling or excavation in the reconnaissance area.

A reconnaissance licence granted is for an initial period of 12 months.

b. Prospecting Licence Holder (PLH)

The Minister responsible for mines may, on an application duly made by a qualified person and on the recommendation of the Minerals Commission, grant prospecting licence in respect of all or any minerals specified in the application.

The holder of a prospecting licence may in the exercise of the rights under the licence, enter upon the land to which the licence relates to undertaking the following;

i. Prospect for minerals in respect of which the licence is granted

ii. Make boreholes and excavations that may be necessary for the prospecting operations,

iii. Erect camps and put up temporary buildings necessary for the prospecting operations and conduct other activity ancillary or incidental to the prospecting.

An applicant can apply for restricted prospecting licence which is valid for 3years.

A prospecting licence shall be granted for an initial period not exceeding three years.

c. Mining Lease (ML)

A holder of a reconnaissance licence or prospecting licence may, prior to the expiration of the licence, apply for a mining lease in respect of all or any of the minerals, the subject of the licence and in respect of all or any one or more of the blocks which constitute the reconnaissance or prospecting area.

A restricted mining lease can be granted as well.

This is for a period of fifteen years.

A mining lease shall be for an initial term of thirty years or for a lesser period that may be agreed with the applicant.

The mining lease permits its holder to engage in reconnaissance and prospecting.

  • GOVERNMENT PARTICIPATION IN MINING LEASE

Where a mineral right is for mining or exploration, the Government of Ghana shall be entitled to 10% free carried interest in the rights and obligations of the mineral operations in respect of which financial contribution shall not be paid by the government. Government is however not precluded from obtaining further participation in mineral operations that may be agreed with the holder.

  • GRANT OF MINING LICENCE IN GHANA

Except for small-scale mining rights which can be granted to an individual as provided for under Act 703, only corporate bodies incorporated in Ghana under the laws of the Republic of Ghana shall be granted a mineral right in Ghana.

A licence for small-scale mining is however granted only to a citizen of the Republic of Ghana who has attained the age of 18 years and is registered by the office of the Minerals Commission in an area designated and known as the District Office.

No foreigner under any circumstances is allowed to participate in the small-scale mining industry.

Mining Licence Application

Overview

The service is for the issuance of the licence to businesses that wish to engage in large scale mining operations in Ghana.

The applicant must obtain a mining licence in order to mine in the country.

Who is eligible?

Citizens and non-citizens owned businesses

Holders of a prospecting licence, retention licence, or a prospecting waiver

Additionally the Company has:

Established domicilium citandi et executandi in Botswana.

Incorporated under the Company Act and carries business of mining under the licence.

Not been in liquidation or under judicial management, except where such liquidation or judicial management is part of scheme for reconstruction or amalgamation of such company.

None of the Directors or Shareholders are disqualified as an individual under the above requirements of an individual.

How do I get this service?

Download, complete the Mining License Application Form V (a)or Mining License Application Form V (b) (renewal), and submit to the nearest office.

Obtain a Prospecting Licence from Department of Mines.

Conduct a Bankable Feasibility Study on the mining and processing the mineral deposit discovered.

Obtain surface rights from the land authority or land owner with a stamped sketch plan showing coordinates.

Obtain authorization for Environmental Impact Assessment from Department of Environmental Affairs (DEA).

Obtain Archaeological Clearance with location coordinates from Department of National Museum and Monuments (DNMM).

What supporting documents are required?

Parent company guarantee.

Certificate of incorporation.

Company documents and identity documents of directors and shareholding.

Bankable Feasibility Study report.

Proposed rehabilitation programme.

Letter of surface rights.

Letter of authorisation from DEA.

Letter of authorisation from DNMM.

If applying within a conservation area, clearance from the Department of Wildlife and National Parks.

Copy of prospecting license, or a retention license, or a prospecting waiver.

How long will this service take?

Thirty (30) days.

How much does it cost?

An annual lease rental fee charged at BWP 100.00 per square kilometre, the first annual lease is paid on receiving of the mining licence and then paid annually on the anniversary of the licence.

Do you need a license to sell gold in Ghana?

License to Buy and Export Gold

It is imperative to note that, in Ghana, an individual need a license to buy and deal with minerals.

Therefore, the export of gold out of the jurisdiction of Ghana can only be done under a license by an entity.

This is regulated under the Minerals and Mining Act, 2006 (Act 703)