Mining/Natural Resources

Armah-Kofi Buah vows to prioritize local content in mining contracts

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The Minister-designate for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has declared that increasing in-country spending and enhancing local content will be his top priorities in mining contract negotiations.

“We want to ensure that the people of Ghana reap all the benefits. We will focus on building Ghanaian capacity, increasing in-country spending, and empowering the Ghanaian private sector to take on significant roles in the mining sector. This will ensure that the revenues and profits generated stay within the country,” he emphasized.

His remarks align with calls from civil society organizations (CSOs) and industry experts for greater state participation in mining projects and contracts.

Challenges in Ghana’s mining sector

The mining sector is a cornerstone of Ghana’s economy, significantly contributing to employment, foreign exchange, and national revenue. However, the sector’s licensing framework has been criticized for its inconsistencies, loopholes, and susceptibility to exploitation. These challenges undermine its potential for sustainable growth.

During his vetting on Monday, January 27, Armah-Kofi Buah highlighted the fragmented nature of the licensing process, which he described as a breeding ground for exploitation and regulatory non-compliance.

Ghana’s venture into lithium mining

Under the previous administration, Ghana joined other African nations in producing green minerals, focusing on lithium—a critical resource for the transition to green technologies. Lithium, a key component in batteries for electric vehicles and renewable energy storage, has become increasingly vital due to the global push for sustainable energy solutions.

Ghana’s entry into lithium production, marked by the commercial discovery at Ewoyaa in the Mfantseman Municipality of the Central Region, has been hailed as a significant step forward. The Barari DV Ghana Limited mining lease for lithium has sparked widespread discussion on the terms of the agreement.

The move to diversify into lithium production—12 years after the country’s commercial oil discovery—positions Ghana to strengthen its economy, create jobs, and contribute to the global supply of essential minerals for green technologies.

Calls for licensing reforms and environmental protection

Recognizing the challenges within the sector, Armah-Kofi Buah underscored the need for greater state participation and comprehensive reform of mining licenses.

He also assured Ghanaians that if confirmed, his tenure would see no new mining activities in forest reserves, reflecting the government’s commitment to environmental conservation and sustainable resource management.

“We have stated that there will be no new mining activities in forest reserves. Our intention is to amend L.I. 2462 to ensure provisions allowing for mining in reserves are removed,” he stated.

This stance demonstrates the government’s resolve to prioritize environmental preservation as a core element of its agenda.

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