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Gov’t urged to review mining policies to attract investments into sector

February 21, 2024
Gov’t urged to review mining policies to attract investments into sector

The call by Mr Henry Antwi, a Mining Engineer and Fellow of the Australian Institute of Mining and Metallurgy, for Ghana to review and enhance its mining laws and policies, underscores a crucial step toward bolstering the country's mining sector to compete more favourably in the global stage. His insights, shared during a public lecture at the Kwame Nkrumah University of Science and Technology (), highlight a broader trend of African nations increasingly recognizing the need to refine their legislative frameworks to maximize benefits from their mineral resources.

Ghana, with a rich history of mining contributing significantly to its economy, finds itself at a crossroads where the potential for growth and development through the mining sector is immense yet challenged by existing policy frameworks and global industry dynamics. The mining sector's contribution of approximately 19% to domestic tax receipts and about 39% to exports, as reported by the Chamber of Mines for 2022, underscores its significance to Ghana's economy.

However, the challenges of price volatility, declining ore grades, and high exploration risks, among others, necessitate a strategic approach to policy reform. The suggestions made by Mr Antwi, such as developing robust infrastructure, improving transparency in mineral resource management, initiating tax credits for exploration, and minimizing administrative bureaucracies in the granting of mining licenses, are pivotal. These measures not only aim to make Ghana more attractive to investors but also seek to ensure that mining contributes more effectively to sustainable economic growth and human development.

The examples of and , as mentioned by Mr Antwi, serve as pertinent case studies for Ghana. These neighbouring countries have managed to attract more investors to their mining sectors by continually updating and enhancing their mining policies and regulations. This strategic approach has not only made them competitive but also ensured they derive maximum benefits from their mineral resources.

Collaboration between academia and the Ghana Geological Survey Authority to compile an atlas of mineral sites represents a forward-thinking approach to attracting investment. By providing detailed and accessible information on mineral resources, Ghana can position itself as an attractive destination for mining investments.

The emphasis on reducing political influence in the administrative processes for mining licenses is crucial for fostering a transparent, efficient, and equitable mining sector. Such reforms are essential for building investor confidence and ensuring that the mining sector operates within a framework that is beneficial to all stakeholders, including the local communities and the nation at large.

In conclusion, the call for a review and enhancement of Ghana's mining laws and policies is timely and critical. By adopting global best practices and ensuring that the mining sector is governed by a transparent, efficient, and equitable regulatory framework, Ghana can unlock the transformative power of its mineral wealth for sustainable economic growth and human development.

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