PART 1 - OWNERSHIP OF MINERALS AND GOVERNMENT RIGHT OF PRE-EMPTION

1. Every mineral in its natural state in, under or upon any land in Ghana, rivers, streams, water-courses throughout Ghana the exclusive economic zone and any area covered by territorial waters or continental shelf is the property of the Republic of Ghana and shall be vested in the Provisional National Defence Council for an on behalf of the people of Ghana.

2. Where any land is required to secure the development or utilisation of a mineral resource the Council may acquire the land or authorise its occupation and use under any applicable enactment for the time being in force.

3. (1) Except as otherwise provided in this Law or any other enactment, no person shall export, sell or otherwise dispose of any mineral unless he holds a licence granted by the Secretary for that purpose.

(2) An application for the licence shall be made in writing to the Secretary in accordance with such regulations as may be prescribed.

(3) The Secretary may issue the licence in such form and on such conditions as he may determine.

(4) A licence issued under subsection (3) of this section shall not be transferable.

4. (1) The Government shall have the right of pre-emption of all minerals raised, won or obtained in Ghana and from any area covered by territorial waters, exclusive economic zone, or the continental shelf and of products derived from the refining or treatment of such minerals.

(2) The Government may, by an Executive Instrument, appoint any statutory corporation to act as its agent for the exercise of the right of pre-emption conferred by subsection (1) of this section.

5. (1) The price to be paid for minerals or products taken in the exercise of the right of pre-emption under section 4 of this Law shall-a.

where it has been provided for in a written agreement, be the price specified therein; and

b. where it has not been provided for in a written agreement, be the publicly quoted market rate prevailing for the minerals or products as delivered at the mine or plant where the right of pre-emption in respect of the minerals or products was exercised.

(2) Where there is no such agreement or prevailing market rate, the price shall be decided upon by an arbitration appointed under the Arbitration Act, 1961 (Act 38).


6. (1) The right of pre-emption under section 4 of this Law shall extend to all minerals or products sold to other customers by the person against whom such right is exercised, but which have not left the boundaries, territorial waters or air space of Ghana.

(2) The price to be paid for such minerals or products shall be the rate provided for in section 5 of this Law or the actual contract price at which such minerals or products were sold, whichever is less, together with-a.

the actual cost of transportation from the mine or plant to the port, railway station or locality to which the minerals or products were taken in the exercise of the right of pre-emption;

b. any actual penalty or damage which the person against whom the right of pre-emption is exercised may prove that he has suffered by reason of any cancellation or alteration of sea, rail, road or air transportation or of charter of vessels or planes for the transportation of the minerals or products; and

c. any actual cost of insurance of the minerals or products.

(3) Any penalty or cost of damage payable by virtue of paragraph (b) of subsection (2) of this section, shall be paid only in respect of a charter or freight agreement entered into for a particular voyage or despatch by sea, air, rail or road and not in respect of a general charter or freight agreement for any prospective voyage or despatch.

7. (1) Any person who obstructs the Government or its agent from exercising its right of pre-emption in respect of any minerals or products under this Law commits an offence and shall on summary conviction be liable to a fine not exceeding C500,000.00 or to imprisonment for a term not exceeding two years or both.

(2) Where any person is convicted of an offence under subsection (1) of this section, he shall in addition to any other punishment that the Court may impose, be liable to pay an amount equivalent to twice the value of the minerals or products and to the cancellation by the Secretary of any mineral right held by him under this Law.

8. (1) Where a mineral right is for reconnaissance, prospecting or mining of minerals, the Government shall acquire a ten per cent interest in the rights and obligations of such mineral operations in respect of which no financial contribution shall be paid by Government.

(2) The Government shall have the option to acquire on such terms as shall be agreed upon between the holder of a mining lease and the Government a further twenty per cent interest in the rights and obligations in any mining operations where any mineral is discovered in commercial quantities except that where the operation if for the mining of salt, the Government shall have the option to acquire a further forty-five per cent interest in the salt operations.

(3) Where the parties fail to agree on the terms of the acquisition by Government of any interest in any mineral operations under this section, the matter shall be referred to arbitration in accordance with section 31 of this Law.

(4) The provisions in subsections (1) and (2) of this section shall not exclude the Government from further participation in any mineral operations and any further participation shall be under such terms as the parties may agree.


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