Ghana’s Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, actively courted international mining investors at an exclusive forum in New York City on the sidelines of the UN Forum on Forests (UNFF21). The minister sought to position Ghana as Africa’s leading destination for mineral investments, emphasizing the nation’s political stability and rich mineral wealth.
Ghana’s Mineral Wealth and Strategic Position
During the forum, Minister Buah highlighted Ghana’s extensive deposits of gold, bauxite, manganese, diamonds, iron ore, lithium, and cobalt. He underscored Ghana’s status as Africa’s top gold producer and sixth globally. Furthermore, the minister stressed the country’s strategic importance in the global energy transition due to its significant reserves of critical minerals.
The mining sector has historically been a significant draw for foreign capital. Over the past two decades, Ghana’s mining industry has attracted more than $20 billion in investments. Major established mining corporations like Newmont, AngloGold Ashanti, Gold Fields, Zijin Mining, and Perseus Mining already operate within the country.
The presence of emerging companies such as Newcore Gold, Azumah Resources, and Northern Ashanti Mines further illustrates Ghana’s increasing appeal to the global mining community. These companies contribute to the sector’s dynamism and growth potential.
Investor Confidence and Legal Frameworks
Minister Buah assured potential investors of a robust legal and institutional framework supporting the mining sector. Key legislation, including the Minerals and Mining Act, 2006 (Act 703), guarantees stability agreements and contract sanctity. Investors are also offered protection against retroactive policy changes and benefit from various tax incentives.
The Ghanaian government has implemented several reforms to enhance the investment climate. These include the removal of the 15 per cent Value Added Tax (VAT) on exploration activities. Additionally, the 1 per cent COVID-19 Levy has been abolished, and the Growth and Sustainability Levy has been reduced.
These measures aim to lower the cost of doing business and increase the attractiveness of Ghana as a mining investment hub. The government is committed to streamlining regulations and improving transparency across the sector.
Diversification and Sustainable Mining Practices
Beyond its traditional strength in gold, Ghana is actively pursuing diversification in its mining portfolio. The government is encouraging investments in lithium, iron ore, bauxite, and various industrial minerals. Plans are also underway to establish domestic gold and lithium refineries, fostering local value addition and job creation.
Addressing concerns about sustainability, Minister Buah reiterated the government’s dedication to combating illegal mining. The Responsible Cooperative Mining and Skills Development Programme (rCOMSDEP) is a key initiative aimed at formalizing community mining operations. This program seeks to create responsible investment opportunities while mitigating the negative impacts of unregulated mining activities.
Ghana also reaffirms its commitment to international standards of transparency and accountability. The nation adheres to frameworks such as the Kimberley Process Certification Scheme and the Voluntary Principles on Security and Human Rights. It also aligns with the principles of the African Mining Vision.
Ghana’s Call to Action
“Ghana is open for business,” Minister Buah declared. He emphasized the enormous opportunities available, the stable operating environment, and the opportune moment for investment. This strong endorsement aims to attract further foreign direct investment into Ghana’s burgeoning mining sector.
The Investors’ Forum was a component of Ghana’s broader participation at UNFF21. This engagement serves to showcase the nation’s leadership in natural resource governance, environmental stewardship, and the development of a sustainable mineral sector on a global platform.
The focus on critical minerals like lithium positions Ghana to capitalize on the growing demand driven by the global shift towards renewable energy technologies. This strategic diversification is expected to attract new types of investors and foster technological advancements within the sector.
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