Black star, green minerals – governance and opportunities in Ghana’s critical minerals sector

As the global economy accelerates towards cleaner energy and more sustainable technologies, a structural transformation of energy systems is taking shape. This transition, reliant as it is on the deployment of solar photovoltaic, electric vehicles, battery storage, and expanded/reconfigured grid networks, requires a reliable supply of key green minerals. As a resource-rich country with a mature mining sector, Ghana's endowment of green minerals, including bauxite, manganese, iron ore, silica, and recently-discovered reserves of lithium, is attracting increasing interest.

The green minerals sector in Ghana

Ghana, with its longstanding and stable democratic governance and investor-friendly business policies, has positioned itself among the most attractive investment destinations in Africa. The mining sector, which has long been a central component both of Ghana’s industrial strategy and of its economy, is in the process of diversifying.

In November 2022, Ghana's government launched its Energy Transition Framework at the COP27 climate conference in Egypt. This initiative forms part of the broader continental effort by many African governments to move beyond being mere suppliers of green mineral feedstocks, and to capture greater value from the clean-energy transition. The framework commits to a 'just and equitable transition', focusing on socioeconomic growth through the use of domestic resources such as lithium and graphite to develop regional manufacturing and processing capability, including components for electric vehicles and battery value chains. The social and economic objectives include the creation of new jobs, improvements in air quality and the attainment of universal electricity access for the Ghanaian populace.

Harnessing the economic value of this new sub-sector requires not only attracting substantial foreign investment but also establishing robust governance.

Governance framework

The governance framework for green minerals is primarily provided by Ghana’s existing mining legislation, constitutional provisions, specialised institutions, and national policies. These include annual mineral rights fees, royalties between 3% and 6% of gross revenue, a 35% corporate income tax rate for mining, and a 10% free carried interest held by the government.

The 1992 Constitution provides that all minerals in their natural state found in Ghana (including green minerals) are the property of the Republic of Ghana and are vested in the President in trust for the people of Ghana. The principal legislation is the Minerals and Mining Act, 2006 (Act 703), subsequently amended by the Minerals and Mining (Amendment) Act, 2015 (Act 900) and the Minerals and Mining (Amendment) Act, 2019 (Act 995). Several state institutions play critical roles in regulating and managing the green minerals sub-sector.

The Minerals Commission is the primary government agency responsible for developing and coordinating mineral sector policies and monitoring their implementation. The Ghana Integrated Aluminium Development Corporation (GIADEC) leads development of the integrated aluminium value chain, while the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), established under the Ghana Integrated Iron and Steel Development Act, 2019 (Act 988), is mandated to accelerate the iron and steel industry, often in partnership with investors.

The Ghana Geological Survey Authority, upgraded in 2016, advises on, promotes, and researches geoscientific issues concerning mineral resources, including active mapping and identification of economic mineral potential for non-traditional base metals.

All exploitation or extraction of green minerals must comply with environmental regulations. This includes securing permits under the newly-enacted Environmental Protection Act, 2025 (Act 1124) and the Environmental Protection (Environmental Assessment) Regulations, 2025 (L.I. 2504), together with any required permits under the Forestry Commission Act, 1999 (Act 571) and the Water Resources Commission Act, 1996 (Act 522).

Policy reforms also shape the governance structure. In July 2023, recognising the strategic importance of green minerals, the government approved a Green Minerals Policy intended to update and complement the 2014 Minerals and Mining Policy. This updated policy aims to introduce more robust regimes to optimise Ghana’s share of value from lithium and other green minerals. It is also expected to prompt legislative amendments, including to the Minerals and Mining Act, 2006 (Act 703). For example, while the current law sets the rate for mineral royalties between 3% and 6%, the new policy proposes a higher royalty regime specifically for green minerals. Local participation requirements across the green-minerals value chain are also expected to increase.

Financing and risk considerations for lenders and sponsors

For banks and ECAs, key diligence points include: (i) security package robustness under Ghanaian law (including mortgages over mineral rights where permissible); (ii) alignment of offtake commitments with local value-addition requirements; (iii) potential adjustments to royalty and local content rules flowing from the Green Minerals Policy; (iv) environmental and social permitting milestones under the Environmental Protection (Environment Assessment) Regulations, 2025; and (v) the interface between state participation (10% free carried interest and any additional negotiated interest) and distribution waterfalls.

Near-term policy evolution – particularly on royalties and local participation – should be monitored and reflected in project structuring, financing covenants, and pricing. With disciplined attention to permitting environmental and social compliance and offtake alignment, investors can position projects to meet both Ghana’s value-addition objectives and international market demand.

Conclusion

Ghana’s endowment of energy-transition minerals positions the country to play a consequential role in global decarbonisation. Stable democratic institutions, a mature mining code and active policy reform create a credible platform for capital deployment across exploration, extraction, processing, and ancillary infrastructure. The features and factors discussed above serve to outline the legal and institutional framework governing green minerals in Ghana, highlight current policy direction, and identify practical considerations for investors, lenders, and sponsors.

Author note

Written by Kwadwo Sarkodie, Partner, Mayer Brown International LLP and Prince Asafo-Adjei, Associate, Sam Okudzeto & Associates / Mayer Brown International LLP.

Read the article online at: https://www.globalminingreview.com/special-reports/23122025/black-star-green-minerals-governance-and-opportunities-in-ghanas-critical-minerals-sector/