As the leading gold producer in Africa, the mineral industry in Ghana is vast and profitable, with a whole host of critical metal and mineral reserves naturally occurring across the country. Therefore, a regulatory body was established by the government to ensure that this natural resource potential brings vital economic development to the region. With the sole responsibility of developing and coordinating the mineral sector across Ghana, The Minerals Commission of Ghana takes great pride in implementing policies and regulations to bring continued prosperity to the people of Ghana and establish it as a key player in mineral trade on a global scale.
The Mineral Commission of Ghana was established as a government agency under the Minerals Commission, which gave the commission legal backing to act as a regulatory and management body for the utilization of Ghana’s miner’s resources and establish any policies relating to the mining of these minerals. The commission aims to foster an efficient and effective regulation and management system developed through knowledge which recognises and establishes the means for mining investments to bring joint prosperity for both investors and the country. The goal of the commission is to make Ghana the leading destination of mining sector investment in Africa as it works to establish an atmosphere where mining companies, investors, stakeholders, and local businesses all mutually benefit to bring continued investment and support the economy of Ghana for the future.
Before the establishment of the commission, there were two governmental agencies which were working to develop and promote the industries for specific minerals in Ghana. These agencies were the Aluminium Industries Commission (AIC) for Bauxite and the Integrated Iron and Steel Commission (IISC) for iron ore. However, the maintenance of two separate agencies with similar mandates posed some challenges and concerns over budgetary constraints and scarce human resources. Therefore, a single united body was established by the government to develop and coordinate the mineral sector all under one roof. The new company, which we today know as The Minerals Commission of Ghana, was then made responsible for coordinating mineral sector policy and monitoring its implementation across all mineral types. This greatly reduced the division of resources and promoted a well-established governing body better suited to manage key investments into the sector for the country.
Today the commission is overseen by a board of 9 members, with the secretariat headed by the Chief Executive Officer. The secretariat is made up of 3 main divisions which oversee the Commission’s operations. These divisions are support services, promotion and development, and inspection and compliance. The commission oversees the vast resources across the country, which has 6 mineralisation belts including the Kibi-Winneba, Shanti, Sewfi-Bekwai, Bui, Bole-Nangodi and Wa-Lawra. Between these belts are a range of basins including Birim, Kumsai (Asankrangwa Belt), Sunyani and Maluwe. This vast resource potential makes Ghana the preferred destination for mineral mining, and so the Commission’s divisions work across all of these belts and basins to oversee mineral operations to ensure continued economic development.
The commission’s role is vast, as we have seen with the expansive mineral potential across the country. However, its overarching mission is to bring continued prosperity to Ghana by investing revenue generated from mineral sales back into the Ghanaian economy. To do this the commission work with stakeholders and government agencies to formulate recommendations for national policy regarding the exploration and exploitation of mineral resources with special reference to establish national priorities. Furthermore, the Commission continues to monitor the implementation of these policies throughout all bodies operating within and alongside the country’s mineral industry.
Just last year, The Minerals Commission of Ghana announced the implementation of the newest edition of its procurement list which now has 50 items on the provisions of goods and services. In an announcement by the CEO of the Mineral Commission, Mr. Martin Kawaku Ayisis, outlined how the procurement list’s regulatory purpose is to promote job creation using local expertise, goods, and services throughout the country’s mining industry. The list is part of the Minerals and Mining (Local Content and Local Participation) Regulation 2020. Part of this legislation requires the commission to provide a public local procurement list which stipulates the goods and services with Ghanaian content which are to be procured in the country.
One of the purposes of the regulations and procurement list ensure continued economic benefits for the country. This means all mining companies are expected to ensure that a minimum of 60% of their financial services including revenue from sales are submitted to local banks. In a similar way, regulations are in place to ensure that 60% of all insurance services which also require placements are to be made with insurance companies which are owned exclusively by Ghanaians. This regulation ensures that banks and insurance companies are keeping a large amount of money from mineral mining within the country.
This commitment to keeping the economic impact of the mineral industry benefitting Ghana is crucial as a whole range of new mines are set to come into commission, and existing ones will continue to expand. New projects expected to begin are with Newmont Ghana Gold Limited and the US$850 million investment in the Ahafo North Gold mine project, the US$500 million gold project currently being undertaken by Cardinal Namdini Mining Limited, a $200million gold mine in the upper west region, and a $125 million lithium project in Ewoya. The planned projects are set to be roughly US$1.7 billion of investment to Ghana. It is these crucial investments that will bring sustained economic development to the region, as the Commission expects these investments to support the growth of the economy and boost local participation.
Overall, The Mineral Commission of Ghana is focused on ensuring that the mineral resources of the country are constantly working to benefit the people of Ghana. As a governing body, it has been vastly successful in regulating and overseeing the mineral industry, which in turn has brought several large investment opportunities to the industry. With over a billion in investment announced just last year, the Commission continues to solidify Ghana’s place as a vital mineral and mining sector not just in Africa but across the globe. As a key area that already benefits from mineral resource potential, a stable regulatory environment, and a favourable fiscal scheme; the Commission’s work continues to make Ghana a hub for minerals.
