Minister for Lands and Natural Resources Mr. Samuel Abu Jinapor has announced that efforts are underway to secure London Bullion Market Association (LBMA) Certification, which will facilitate the international trading of gold refined in the country.
The Minister who is also the Member of Parliament (MP) for Damongo in Savannah Region said government has established a Gold Refinery through a Public-Private Partnership (PPP) to promote this objective.
In addition to this, he said the Ghana Integrated Aluminium Development Corporation (GIADEC) and the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) have been set up to promote and develop integrated aluminium and iron and steel industries in the country.
The Lands and Natural Resources Minister announced these when he opened the 2023 Ghana Mining Expo in Takoradi on Friday.
He noted that with an estimated bauxite resource base of 9 million metric tonnes, the development of an integrated aluminium industry is seen as crucial for substantial national economic growth and the creation of thousands of jobs.
Ghana, he stressed, is placing great importance on the beneficiation and value addition of its mineral resources to achieve mutual benefits for the government and investors.
Mr. Abu Jinapor said government aims to maximize the potential gains from its resources, recognizing the true value of minerals lies in value addition.
He stated that the notable difference in prices between bauxite and aluminium ingot, produced from bauxite, is as high as 3,000%.
This trend, he said, is not limited to bauxite alone.
According to him, the global lithium industry is valued at approximately US$11 billion during the mining stage.
“However, at the highest end, which involves the production of batteries, the industry is estimated to be worth around seven trillion US dollars (US$7,000,000,000,000.00).
“To harness the benefits of these minerals, Ghana recognizes the need to invest in value addition.
“Under the leadership of President Akufo-Addo since 2017, the government has been committed to implementing policies aimed at adding value to the country’s mineral resources,” he stated.
Stakeholder collaboration
The government, Mr. Abu Jinapor said, is collaborating with stakeholders to ensure that Ghana no longer exports bauxite and iron ore in their raw states.
He said by adding value to these resources, the government aims to unlock prosperity for its citizens and drive the country’s socio-economic advancement.
Value chain of green minerals
Lands and Natural Resources Minister also revealed that the Cabinet of President Akufo-Addo is currently reviewing a policy proposal for the exploitation, management, and utilization of Ghana’s green minerals, including lithium.
The objective, according to him, is to ensure that Ghana retains a significant portion of the value chain for these critical minerals within the country.
Mr. Abu Jinapor highlighted the overarching objective of promoting local content and local participation.
He stated that the government aims to ensure that Ghanaians, as the owners of these mineral resources according to the 1992 Constitution, benefit from the mining industry.
Measures, he said, have been taken to increase local procurement, with the number of items on the Local Procurement List reserved for Ghanaians being raised to 50.
“This initiative is expected to retain an estimated annual amount of three billion US dollars (US$3 billion) within the country that would otherwise be directed abroad,” he said.
Mr. Abu Jinapor emphasized that while these policies are implemented with investor interests in mind, the government recognizes the importance of mining communities directly affected by mining operations.
“To address their needs, the Minerals Development Fund (MDF) has been established to provide direct financial resources for the benefit of these communities.
“Additionally, the government has implemented the National Alternative Employment and Livelihood Programme (NAELP) and the Community Mining Schemes to further support mining communities.”
He called for collaboration and support from all stakeholders, highlighting the importance of working together to source expertise, drive innovation, and build partnerships.
The goal, he said, is to achieve sustainable mineral resource development that will fuel optimal socio-economic growth and development.
Abu Jinapor underscored the shared responsibility of the government and operators in the mining industry, emphasizing the duty to develop mining communities and ensure their well-being.
He expressed the ministry’s unwavering commitment, under the leadership of President Akufo-Addo, to work collaboratively with stakeholders to fulfil this sacred duty.
