Include landowners in payment of community mineral royalty – Report

A recent study on Ghana’s proposed Minerals Royalty Bill has recommended that landowners be included in the distribution of community‑level mineral royalties, a move aimed at reducing tensions in mining areas and ensuring a more equitable share of the country’s mineral wealth. The research, commissioned by Livelihood and Environment Ghana in collaboration with ten civil society organisations and supported by the Star Ghana Foundation, was presented by consultant Dr Abdulai Darimani at a national convening on the bill.

The existing formula allocating 20 % of mineral royalties to community‑level stakeholders dates back to 1960 and has remained unchanged for over six decades. The study argues that such a long‑standing allocation is outdated and calls for a review that would increase the community share to 15 % of total royalties.

Under the proposed revised allocation, the 15 % community portion would be further divided: 3 % would go to the Office of the Administrator of Stool Lands to ensure timely disbursement and monitoring, 15 % to the stool (traditional land‑owning entity), 10 % to the traditional authority, 5 % to landowners, and the remaining 70 % to District Assemblies for local development projects.

The report highlights that involving landowners directly in royalty payments would give them a vested interest in the success of mining operations, thereby reducing conflicts and fostering cooperation between communities and mining companies. It also recommends clear timelines for the transfer of funds between institutions to prevent delays and potential misuse of resources.

Ghana’s mineral sector has long been a source of both revenue and contention, with frequent debates over how mining benefits are distributed among the state, traditional leaders, and local communities. The Minerals and Mining (Amendment) Act, 2015 (Act 900) already moved away from a fixed royalty rate, allowing the Minister of Lands and Natural Resources to set rates through regulations. The current study builds on that shift by advocating for a more granular distribution formula.

Stakeholders interviewed for the study expressed optimism that a revised formula could lead to greater transparency and accountability. By earmarking a specific share for landowners, the proposal acknowledges their role as custodians of the land that hosts mining activities and provides them with a direct financial stake in sustainable extraction.

The report also calls for periodic reviews of the royalty allocation every five years to ensure it remains responsive to changing economic and social conditions. Implementing such a mechanism would help Ghana align its mineral governance with international best practices on resource‑dependent development.

As the country continues to refine its mining policy, the inclusion of landowners in royalty distribution represents a step toward a more inclusive and equitable framework that benefits both local communities and the national economy.