Introduction
Few Ghanaians know that there is a law specifically designed to protect the rights of communities, farmers, and property owners affected by mining operations. The Minerals and Mining (Compensation and Resettlement) Regulations, 2012 (L.I. 2175) was enacted to ensure that when mining companies acquire land for operations, affected persons are fairly compensated and properly resettled. Unfortunately, the existence and enforcement of this law remain poorly understood among the general public and sometimes even by affected communities themselves.
The Purpose of L.I. 2175
The regulations were passed under the Minerals and Mining Act, 2006 (Act 703) to provide a detailed framework for:
- Compensation claims by landowners, farmers, and communities.
- The fair assessment and timely payment of compensation.
- Guidelines for resettlement when mining activities displace inhabitants.
- Protecting the surface rights of lawful occupiers of land.
Simply put, the law seeks to balance mining investment with social justice, ensuring that local livelihoods and socio-cultural values are not destroyed by resource exploitation.
Key Provisions Every Ghanaian Should Know
1. Compensation Rights
- Within 14 days after a mineral right is granted, companies must notify persons whose land or livelihood is affected
Minerals-and-Mining-Compensation
- Affected persons have 60 days to file written claims for compensation, covering crops, structures, income, or loss of livelihood.
- Compensation can be in cash or in kind (e.g., replacement property, training opportunities, or resettlement support).
2. Assessment of Compensation
- Compensation must reflect the full replacement cost of property and income loss.
- For crops, the Ministry of Agriculture publishes an annual price list, which serves as the benchmark for valuation.
- Farmers, landowners, and mining companies may form a negotiation committee with representation from chiefs, District Assemblies, and valuation experts
3. Time for Payment
- Mining companies must pay agreed compensation within 3 months.
- Failure to do so attracts a 10% interest per month on the unpaid amount
4. Resettlement Requirements
Where mining displaces entire communities, companies must:
- Provide suitable alternative land.
- Ensure resettlement enhances the economic well-being and living standards of displaced persons.
- Prepare a resettlement plan that is reviewed and approved by the District Assembly.
- Establish a Resettlement Monitoring Committee made up of local leaders, Assembly members, and affected inhabitants
5. Dispute Resolution
- If parties cannot agree, disputes may be referred to the Minister for Mines or ultimately determined by the High Court
Why Most Ghanaians Don’t Know About It
Despite its protective provisions, L.I. 2175 remains obscure because:
- Communities often lack legal awareness or access to lawyers.
- Mining companies sometimes exploit this ignorance to delay or underpay compensation.
- Government agencies responsible for enforcement are under-resourced.
- Civil society advocacy on mining laws focuses more on environmental issues than compensation and resettlement rights.
Conclusion: A Law Worth Knowing
The Minerals and Mining (Compensation and Resettlement) Regulations, 2012 (L.I. 2175) is a people centered law. It recognizes that mining has social and economic costs and places clear obligations on companies to mitigate those impacts. Public awareness and enforcement are, however, still weak. For affected communities, traditional authorities, and local governments, understanding this law is not optional it is the key to ensuring justice in Ghana’s extractive industry.
Written By: Kwasi Gyamfi Boadu Esq
