Ghana must process minerals locally to maximise mining benefits – Seth Terkper

Mr Seth Terkper, Presidential Advisor on the Economy, has called for a strategic shift towards value addition in Ghana's mining sector to maximise the economic benefits of the country's mineral resources.

He said Ghana must move beyond exporting raw minerals to developing local processing industries capable of generating higher economic returns, creating jobs and strengthening foreign exchange reserves.

Mr Terkper, a former Minister of Finance, made the call at the China-Ghana Mining Cooperation Conference 2026 in Accra on Tuesday, where he represented the Chief of Staff.

The conference was on the theme: “Innovation-Driven, Win-Win Cooperation, Advancing High-Quality China-Ghana Mining Cooperation.”

He said Ghana needed to assess developments in the mining sector within the broader macroeconomic context, particularly as the country transitioned towards middle-income status and faced changing conditions in accessing international development financing.

He explained that countries attaining middle-income status gradually lost access to grants and concessional financing, making it necessary to strengthen domestic revenue mobilisation, industrial production and export earnings to sustain economic growth.

He said grants, which previously accounted for about five per cent of Ghana's revenue, had declined to approximately two per cent or less, while the country increasingly relied on developing its domestic debt market to meet financing needs.

Against that background, he said Ghana needed to ensure that its mineral resources generated sufficient domestic economic benefits to support its development ambitions.

Mr Terkper also urged the Government to consider the fiscal implications of incentives granted to mining companies, including tax holidays and other concessions, and ensure that the benefits from mineral exports justified such incentives.

He said gold smuggling through unofficial export channels deprived the country of revenue that could otherwise strengthen its foreign exchange position and offset the cost of incentives granted to mining companies.

He stressed that expanding local processing capacity and retaining more value from mineral production were essential to making the mining sector contribute meaningfully to national development.

“Because we are able to generate a higher value. And this must not just be seen in the context of mining, but it must be seen across all the sectors of the economy,” he said.

Mr Terkper also called for appropriate financing mechanisms to support local industries engaged in processing and exporting value-added products.

He cited the establishment of the Export-Import Bank (EXIM Bank) as an important intervention to provide the financial support needed to expand exports beyond raw materials.

He urged the Association of China-Ghana Mining (ACGM) to approach mining cooperation within a broader national and continental development framework that prioritised industrialisation, environmental protection and economic transformation.

Mr Kwame Ahumah, Director of Mines at the Ministry of Lands and Natural Resources, said Ghana needed to move beyond exporting raw minerals and strengthen linkages between mining and manufacturing.

He said the Government was pursuing policy and legal reforms to promote domestic processing and refining of minerals produced in the country.

He cited initiatives in the gold, bauxite, aluminium, iron and lithium sectors aimed at developing integrated value chains, including local refining, aluminium production and exploring opportunities for battery manufacturing.

Mr Ahumah said Ghana was seeking investments that would establish processing plants, develop local supply chains, facilitate technology transfer and create jobs.

He said the country's mineral resources offered opportunities for Chinese investors in gold refining, bauxite and aluminium production, lithium processing, geological exploration and green mining technologies.

Mr Isaac Andrews Tandoh, Chief Executive Officer of the Minerals Commission, said Chinese capital, technology and expertise had contributed significantly to Ghana's emergence as Africa's leading gold producer.

However, he said such partnerships must be anchored in transparency, sustainability, regulatory compliance and equitable benefits for Ghanaians.

He warned that illegal mining, particularly involving foreign nationals, threatened the country's water bodies, forest reserves and national security.

Mr Tandoh called for stronger collaboration between Chinese authorities and Ghanaian security and regulatory agencies to dismantle the financing and logistical networks supporting illegal mining.

He said the Commission was committed to working with investors who respected Ghana's laws, protected the environment and supported local content objectives.

He added that Ghana welcomed responsible Chinese investment that created decent jobs, strengthened local industries and ensured that mineral wealth benefited host communities.

Mr Cong Song, Chinese Ambassador to Ghana, said China was committed to strengthening mining cooperation with Ghana through technology transfer, industrial value addition and skills development.

He said Chinese mining companies operating in Ghana were contributing to technological advancement, local employment, community development and improved operational efficiency.

China's approach to mining cooperation with Africa, he said, prioritised mutual benefit, high-quality development and the expansion of local processing capacity.

Mr Cong said China was ready to collaborate with Ghana across the mining value chain, including geological exploration, local processing, industrial value addition and skills development.

He reaffirmed China's position that its citizens and enterprises operating in Ghana must comply with the country's laws and regulations, prioritise occupational safety and environmental protection, respect local customs and fulfil their social responsibilities.

GNA