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Too Much, Too Little: the Dilemma of Ghana’s Legal Regime for Investment in the Mining Sector

Received: 25 October 2021    Accepted: 29 December 2021    Published: 28 February 2022
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Abstract

Ghana, through its constitutional arrangement, practices the public ownership of natural resources. The state grants mining rights to prospective investors in the mining sector. However, the exploitation of natural resources in Ghana has had devastating effects on its mining communities including deprivation and destruction of farmlands, delayed compensation, rising cost of living, inadequate housing, youth unemployment and family disorganisation. Besides, mining communities in Ghana face a number of challenges such as the failure to incorporate in legal provisions wealth creation opportunities for local indigenes as compensation for the deprivation of their land, and conflicts that erupt between mining companies and indigenes due to deprivation of their source of income. Using the doctrinal lecgal research, this article seeks to examine the legal environment regulating investments and investor protection in Ghana’s mining sector. The paper postulates that the prevailing legal regime in Ghana’s mining sector protects investors but ignores the needs of the local communities. It reveals that the current legal regime in Ghana for development of mining communities is heavily dependant on the royalties paid to the state, which has failed to ensure adequate development in mining communities. The article argues for a paradigm shift and advocates for a balance of protection and treatment for investors and mining communities because the existing legal regime for investment gives too much to investors and very little to mining communities.

Published in International Journal of Law and Society (Volume 5, Issue 1)
DOI 10.11648/j.ijls.20220501.24
Page(s) 123-133
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Mining, Mining Rights, Development, Mining Communities, Foreign Direct Investment, Natural Resources and Deprivation

References
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Cite This Article
  • APA Style

    Chris Adomako-Kwakye, Richard Obeng Mensah. (2022). Too Much, Too Little: the Dilemma of Ghana’s Legal Regime for Investment in the Mining Sector. International Journal of Law and Society, 5(1), 123-133. https://doi.org/10.11648/j.ijls.20220501.24

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    ACS Style

    Chris Adomako-Kwakye; Richard Obeng Mensah. Too Much, Too Little: the Dilemma of Ghana’s Legal Regime for Investment in the Mining Sector. Int. J. Law Soc. 2022, 5(1), 123-133. doi: 10.11648/j.ijls.20220501.24

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    AMA Style

    Chris Adomako-Kwakye, Richard Obeng Mensah. Too Much, Too Little: the Dilemma of Ghana’s Legal Regime for Investment in the Mining Sector. Int J Law Soc. 2022;5(1):123-133. doi: 10.11648/j.ijls.20220501.24

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  • @article{10.11648/j.ijls.20220501.24,
      author = {Chris Adomako-Kwakye and Richard Obeng Mensah},
      title = {Too Much, Too Little: the Dilemma of Ghana’s Legal Regime for Investment in the Mining Sector},
      journal = {International Journal of Law and Society},
      volume = {5},
      number = {1},
      pages = {123-133},
      doi = {10.11648/j.ijls.20220501.24},
      url = {https://doi.org/10.11648/j.ijls.20220501.24},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20220501.24},
      abstract = {Ghana, through its constitutional arrangement, practices the public ownership of natural resources. The state grants mining rights to prospective investors in the mining sector. However, the exploitation of natural resources in Ghana has had devastating effects on its mining communities including deprivation and destruction of farmlands, delayed compensation, rising cost of living, inadequate housing, youth unemployment and family disorganisation. Besides, mining communities in Ghana face a number of challenges such as the failure to incorporate in legal provisions wealth creation opportunities for local indigenes as compensation for the deprivation of their land, and conflicts that erupt between mining companies and indigenes due to deprivation of their source of income. Using the doctrinal lecgal research, this article seeks to examine the legal environment regulating investments and investor protection in Ghana’s mining sector. The paper postulates that the prevailing legal regime in Ghana’s mining sector protects investors but ignores the needs of the local communities. It reveals that the current legal regime in Ghana for development of mining communities is heavily dependant on the royalties paid to the state, which has failed to ensure adequate development in mining communities. The article argues for a paradigm shift and advocates for a balance of protection and treatment for investors and mining communities because the existing legal regime for investment gives too much to investors and very little to mining communities.},
     year = {2022}
    }
    

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    AB  - Ghana, through its constitutional arrangement, practices the public ownership of natural resources. The state grants mining rights to prospective investors in the mining sector. However, the exploitation of natural resources in Ghana has had devastating effects on its mining communities including deprivation and destruction of farmlands, delayed compensation, rising cost of living, inadequate housing, youth unemployment and family disorganisation. Besides, mining communities in Ghana face a number of challenges such as the failure to incorporate in legal provisions wealth creation opportunities for local indigenes as compensation for the deprivation of their land, and conflicts that erupt between mining companies and indigenes due to deprivation of their source of income. Using the doctrinal lecgal research, this article seeks to examine the legal environment regulating investments and investor protection in Ghana’s mining sector. The paper postulates that the prevailing legal regime in Ghana’s mining sector protects investors but ignores the needs of the local communities. It reveals that the current legal regime in Ghana for development of mining communities is heavily dependant on the royalties paid to the state, which has failed to ensure adequate development in mining communities. The article argues for a paradigm shift and advocates for a balance of protection and treatment for investors and mining communities because the existing legal regime for investment gives too much to investors and very little to mining communities.
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Author Information
  • Faculty of Law, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana

  • Faculty of Law, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana

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