BTA2023 Ghana’s mining landscape is poised for a significant shift as the Lands and Natural Resources Minister-designate, Emmanuel Armah-Kofi Buah, advocates for a stronger emphasis on value addition in future mineral agreements. During his vetting before the Parliamentary Appointments Committee, he stressed the need for Ghana to maximize economic benefits from its mineral wealth, particularly emerging resources like lithium.
Buah highlighted the necessity of integrating local processing and value-chain development into new mining negotiations, signaling a departure from traditional extraction-focused agreements. “When it comes to new minerals, my strong view is that Ghana must really win in negotiations. There must be a paradigm shift to ensure that the country benefits more than it has before,” he asserted.
His remarks came in response to concerns about investor confidence amid potential policy shifts following a change in government. Specifically, the discussion centered on Ghana’s maiden lithium agreement with Barari DV Ghana Limited, a subsidiary of Atlantic Lithium. Signed in October 2023, the deal granted Barari DV exclusive rights to mine lithium at Ewoyaa in the Central Region under a 15-year lease covering approximately 42.63 square kilometers. It featured a 10% royalty rate and 13% free carried interest for the state, but it remained unratified before the dissolution of the 8th Parliament.
The agreement sparked intense public debate, with the Institute of Economic Affairs (IEA) and other policy advocates arguing that it failed to correct historical shortcomings in Ghana’s mineral contracts. They pushed for a model that prioritizes national control, economic value, and strict adherence to constitutional processes.
Crackdown on Illegal Mining and Policy Reforms
Beyond mineral agreements, Buah also addressed Ghana’s ongoing fight against illegal mining, known locally as galamsey. While he reaffirmed the government’s commitment to halting mining in water bodies and restoring degraded forests, he refrained from specifying a timeline for declaring a ‘state of emergency’ on galamsey—a pledge made before the last elections.
As part of broader environmental reforms, he announced plans to review the Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (L.I. 2462), with the aim of prohibiting new mining activities in forest reserves. “Our intention is to amend L.I. 2462 to remove the provision allowing mining in forest reserves,” he stated, pledging to make it his first priority if confirmed as minister.
In addition, the government plans to roll out three initiatives—the Blue Water Initiative, Tree for Life Initiative, and Restore Ghana Initiative—to rehabilitate degraded ecosystems and tackle the illegal mining crisis comprehensively.
CSO Reactions and Legal Implications
Buah’s stance on L.I. 2462 received a measured welcome from environmental advocates, particularly A Rocha Ghana, which, alongside other civil society organizations, had previously sued the government over the regulation. Daryl Bosu, Deputy National Director of A Rocha Ghana, acknowledged the minister-designate’s recognition of the risks posed by the regulation but reiterated their call for a complete repeal rather than a mere amendment.
As Ghana navigates the complexities of mining reforms, the proposed policy shifts signal a stronger push for resource nationalism, environmental protection, and greater economic returns from the country’s mineral wealth. However, their success will largely depend on the government’s ability to balance investor confidence with national interest.
