NRGI Calls for Urgent Review of Mining Policy to Tackle Corruption in Ghana’s Critical Minerals Sector
Africa Senior Programme Officer at the Natural Resource Governance Institute (NRGI), Denis Gyeyir, has emphasized the need for Ghana to update its mining policy framework, focusing on anti-corruption and sustainability in its burgeoning critical minerals sector.
Speaking at a workshop on corruption in the minerals value chain on Tuesday, November 12, 2024, Mr Gyeyir highlighted the importance of aligning the country’s policies with global standards to ensure environmental protection and prevent corruption, especially as demand for transition minerals surges.
“In as much as it is important that we begin to mine green and transition minerals, the country needs to look at the policies and laws that guide the extraction of these critical minerals,” he stated, noting that a revision of the 2014 mining policy is necessary to address gaps in value addition and environmental standards.
NRGI, which has been collaborating with Ghana’s Minerals Commission for a long time now, expects that these policy revisions will align Ghana’s resource governance with international benchmarks for transition minerals, including lithium, graphite, and bauxite.
Mr Gyeyir speaking further at the workshop, disclosed that NRGI’s global president sits on the UN Transition Minerals Panel, which has developed seven principles aimed at minimizing harmful impacts on communities and the environment.
He urged the Ghanaian government to integrate these standards into local regulations, ensuring that critical mineral extraction supports sustainable development goals.
“These global principles we have supported internationally should help shape policies, laws, and procedures for these minerals here in Ghana,” he added.
Corruption Risks in Ghana’s Mining Sector
Ghana, Africa’s largest gold producer, earned $7.2 billion from gold exports from January to August 2024, underscoring the economic importance of the mining sector. With substantial reserves of transition minerals—35.3 million tons of lithium and 22.4 million tons of graphite—Ghana’s mineral wealth positions it to capitalize on global demand for green energy resources.
However, Mr Gyeyir cautioned that Ghana’s mining sector remains vulnerable to corruption risks. Factors such as high profitability, complex supply chains, and a lack of transparency in production and export valuation make the sector susceptible to practices like trade mispricing, tax avoidance, and bribery.
According to the NRGI Triple Win report, more than 70% of African countries with transition mineral reserves rank low on corruption indices, intensifying the risks of fast-tracked contracts that could jeopardize environmental and social safeguards.
To combat these risks, Mr Gyeyir shared that NRGI has developed a set of “red flags” to identify areas of heightened corruption risk across the mining value chain. These signals, he noted, will help journalists, civil society organizations, and anti-corruption bodies like the Economic and Organized Crime Office (EOCO) to enhance oversight of corruption activities in the critical minerals sector.
Path Forward for Ghana’s Mining Policy
Mr Gyeyir concluded that NRGI is focused on ensuring the country’s evolving legal framework reflects stringent anti-corruption standards and strong governance principles, whether under the current administration or future governments.
He underscored the importance of involving all stakeholders, including the media, in advocating for transparent resource management to maximize the benefits from Ghana’s mineral wealth.
As Ghana navigates the rapidly changing dynamics of critical mineral extraction, stakeholders posit that effective governance and anti-corruption mechanisms will be key to avoiding the pitfalls of resource dependency and ensuring that mineral wealth translates into tangible development outcomes for communities and the country at large.
The NRGI Corruption Diagnostic Tool
In recognition of the potential corruption risks with transition minerals, NRGI relaunched its corruption diagnostic tool, developed in 2021.
The tool, an adaptable, step-by-step process designed to help anti-corruption actors identify and understand major corruption issues in the extractives sector, incorporates new insights and research to make it as effective as possible.
The process emphasizes collaboration across stakeholders, both to strengthen understanding of the most pressing issues and to build buy-in for reforms.
