The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has reaffirmed government’s commitment to adding value to Ghana’s mineral resources, particularly the green minerals for a revolutionary and effective utilisation of the minerals.
He said under no circumstances will Ghana export its lithium and other green minerals in their raw state, adding that government will build strong infrastructure for value addition.
The Minister gave the assurance during the Bloomberg New Economy Africa Conference, held in Marrakesh, Morocco. It brought together leaders from the private and public sectors to discuss the world’s most pressing issues and evaluate potential solutions in the context of local and regional priorities. This year’s conference put the spotlight on Africa’s green minerals.
On building value from the energy transition, the Minister said the surest way to benefit from these green minerals, in view of the green energy transition, is to ensure value addition.
Paradigm shift
Mr Jinapor stressed that a shift towards value addition would not only ensure that the country benefited fully from the natural resource endowments, but also help in tackling the climate crisis.
The Minister said it is unacceptable that after many years of mining in the country, minerals are still exported in their raw form. He bemoaned that the over concentration on the export of raw minerals had impeded Africa’s realisation of mineral resource benefits for several years.
He further observed that such a development had made it impossible for the country to attract the needed foreign exchange or create employment opportunities along the value chain.
He, therefore, emphasised the need and urgency to make a conscious effort to move away from the export of raw materials to value addition.
Diversification
He added that the discovery of other minerals such as lithium and iron ore in various parts of the country meant that the mineral base of the country was increasingly being diversified, and the move towards value addition was crucial to leverage the potential of those minerals.
The Minister observed that the discovery of more minerals was not an end in itself but that the extent to which those resources were refined would determine the value the country would derive from it.
Ghana is endowed with several green minerals including lithium, graphite, Chrome, Zinc, Copper, Cobalt and Nickel. Lithium, in particular, have been found in high grade in the Central Region.
According to experts, the global lithium industry at the mining stage is about 11 billion US dollars. But the value of the industry at the highest end, which is battery production is estimated at 7 trillion US dollars.
However, the processes from mining to battery production are very capital intensive. Currently, China is the only country doing end to end retention of the full value from mining to battery production.
Commitment
The Minister added that even though Ghana may not be able to retain the full value chain from mining to battery production in the country at this stage, Government is committed to ensure that a significant proportion of the value chain is retained in Ghana.
“We intend to end the practice of not adding value to our mineral resources. We are beginning by establishing the appropriate policy and legal framework for Ghana to significantly benefit from the new paradigm of green energy,” the Minister said.
He disclosed that a policy for the exploitation, management and utilisation of the country’s green minerals is currently before Cabinet for consideration. He said the policy is aimed at ensuring that the people of Ghana benefit from these minerals through value addition, local content and local participation.
The Minister expressed optimism that Cabinet will soon approve the policy to pave way for the exploitation of our lithium resources.
Interventions
In line with President Nana Addo Dankwa Akufo-Addo’s vision of adding value to the country’s natural resources, the government had, since 2017, implemented a number of policies aimed at retaining value in the natural resource sector.
For instance, the Ghana Integrated Aluminium Development Corporation (GIADEC) was established in 2018 to develop and promote Ghana’s integrated aluminium industry.
The Ghana Integrated Iron and Steel Development Corporation (GIISDEC) was also established in 2019 with the overarching goal to leverage Ghana’s iron ore reserves and allied steel assets to drive the country’s industrialisation.
Royal Gold Ghana Limited (RGGL), a refinery in which the state has a 20 per cent stake, has also been established on the premises of the Precious Minerals Marketing Company (PMMC).
The RGGL, which is a partnership between the PMMC and Rosy Royal Limited, an Indian company, has the capacity to refine between 300 and 500 kg of gold daily.
