A new mining law that would put Ghana back on stream as a preferred mining investment destination would be ready by June this year.

The much-awaited Bill, which, should have been effective following the outdating of the previous one in the mid-90's, is currently before the Attorney-General for appropriate drafting and advice.

Mr Kwadwo Adjei-Darko, Minister of Mines, told the Ghana News Agency (GNA) Business Desk on Wednesday that the new Law would have a lifespan of about 15 years as against the old law, which was for a little over 10 years.

Mr Adjei-Darko was reacting to comments that the Law had delayed and was making the industry lose some of its principal characters.

Ghana recently lost its position on the list of favoured mining investment destinations. Guinea, Tanzania and Zimbabwe who copied Ghana's previous law and made modifications now attract the major mining firms across the world.

The absence of a new favourable Law has forced mining companies to fold up or relocate and caused the mining industry in Ghana to face declining number of reconnaissance and prospecting activities. This has resulted in a dwindling number of mining licenses granted within the last few years.

He explained that 15 years was a reasonable period for junior companies and mining companies themselves to make up their minds to want to invest in the industry.

The absence of the Law means that there is very little exploration going on while the few projects underway are all on hold.

About 10 companies in exploration and other mining service areas have relocated in other countries on the continent.

They include Ausdril, Cluff Mining, Drill Sure, Guinea Coast Mining, Stanley Mining, West Africa Drilling Services, Barnex Prestea and Degussa Huls.

Statistics made available to the GNA indicate that from a high number of 62 mining licences issued in 1997, the number dropped sharply to 20 the following year and to only eight last year.

Reconnaissance licenses went up from a low of two in 1991 to 42 in 1995 but slumped to 11 in 2001.

Giving highlights of the upcoming Law, Mr Adjei-Darko said it has a Stability Development Clause and another clause that would ensure the establishment of a refinery.

The Stability Development Clause would ensure that investors operated in an atmosphere where they were guaranteed stability in their activities.

He said mining is an expensive venture and anyone who invests in it must be guaranteed a return on his investment.