Land Acquisition Under The Minerals And Mining Act, 2006 (Act 703) And The Rights Of Proprietors Of Land Acquired For Mining In Ghana

Introduction

Mining remains a critical pillar of Ghana's economy, contributing significantly to foreign exchange earnings, employment, and infrastructural development. The exploitation of mineral resources, however, inevitably intersects with land ownership and surface rights, often creating tension between the State, mining entities, and landowners. Ghana's legal framework, anchored primarily in the 1992 Constitution and the Minerals and Mining Act, 2006 (Act 703), seeks to balance national economic interests with the protection of proprietary and customary land rights.

This article examines the legal regime governing land acquisition for mining in Ghana and critically analyzes the rights and obligations of landowners whose lands are affected by mineral operations.

Ownership and Control of Minerals in Ghana

Under Article 257(6) of the 1992 Constitution, all minerals in their natural state, whether found on land, under land, in rivers, streams, watercourses, or within Ghana's territorial waters, exclusive economic zone, and continental shelf, are vested in the Republic of Ghana and held by the President in trust for the people.

Consequently, no individual, landowner, or customary authority may lawfully exploit minerals without obtaining the requisite mineral right from the Minister responsible for mines. This constitutional vesting separates mineral ownership from land ownership, meaning that while individuals may own the surface of the land, the minerals beneath remain the property of the State.

Surface Rights of Landowners and Their Limitations

The owner or lawful occupier of land retains rights over the surface soil, subject to restrictions imposed by mining operations. Once a mineral right is granted over land, the landowner's rights are curtailed to the extent necessary to enable mineral exploitation. Landowners may continue to use the land for purposes such as grazing or cultivation only where such activities do not interfere with mining operations, a determination largely left to the holder of the mining lease.

Compulsory Acquisition of Land for Mining

The President may compulsorily acquire land or authorise its occupation where the land is required for the development or utilisation of mineral resources. When this is done, the owner of the land ought to be compensated for the loss of his land, present and future.

Parliamentary Ratification of Mining Agreements

Article 268 of the Constitution mandates parliamentary ratification of all agreements involving the grant of mineral rights by or on behalf of the Government of Ghana.

Such agreements do not take legal effect until ratified, although non-ratification does not automatically render them void. Parliament may, by a two-thirds majority, exempt specific classes of transactions from this requirement.

This constitutional safeguard promotes transparency and accountability in the management of Ghana's natural resources.

Mineral Rights and Licensing Regime

Mineral rights may only be granted to bodies corporate duly incorporated under Ghanaian law. Individuals, including landowners, cannot mine without a licence, even where they own the land. Mineral rights are non-transferable without ministerial approval and may only be exercised in respect of the minerals expressly stated in the licence.

The Act recognises three principal mineral licences:

• Reconnaissance Licence: This is granted for up to twelve months, renewable for a period not exceeding 12 months.
• Prospecting Licence: This is granted for an initial period of up to three years, renewable for a period not exceeding 3 years.
• Mining Lease: This is granted following successful reconnaissance or prospecting, typically for up to thirty years. It may still be granted even where there was no reconnaissance or prospecting done.

Each licence confers specific rights and imposes obligations aimed at ensuring orderly and environmentally responsible mining.

Environmental, Forestry, and Water Rights Approvals

Holders of mineral rights must obtain permits from the Environmental Protection Agency (EPA) and, where applicable, the Forestry Commission, before commencing operations. These approvals are mandatory safeguards to protect ecosystems and public health.

Additionally, where mining operations involve the diversion or use of water, licences must be obtained from the Water Resources Commission. Any damage resulting from water use exposes the mineral right holder to civil liability.

Compensation for Disturbance of Surface Rights

Landowners and lawful occupiers whose surface rights are disturbed by mining operations are entitled to compensation. Compensation covers deprivation of land use, damage to property, and loss of income from crops or cultivation. The process requires negotiation between the parties, failing which the Minister, in consultation with the Land Valuation Division, determines the compensation payable.

Access to the High Court is available only after these statutory mechanisms have been exhausted, ensuring administrative resolution before judicial intervention.

Conclusion

Ghana's mining law framework reflects a deliberate attempt to balance State ownership of mineral resources with the protection of landowners' surface rights. While Act 703 provides extensive safeguards through compensation, parliamentary oversight, and environmental regulation, practical challenges remain, particularly regarding the discretionary powers of mining lease holders and equitable revenue distribution.

Strengthening independent oversight, enhancing landowner protections, and reforming compensation procedures would contribute significantly to promoting fairness, sustainable development, and social harmony in mining communities.