A coalition of civil society organisations (CSOs) advocating greater Ghanaian participation in the extractive sector has welcomed President John Dramani Mahama’s decision to give Adamus Resources a 12-month reprieve following a dispute over the revocation of its mining leases.
The coalition, the Coalition of CSOs Promoting Indigenisation in the Extractive Sector (CoCPIES), said the intervention provides an opportunity to address the operational and regulatory difficulties confronting the Ghanaian-owned mining company while keeping it in the industry.
Under the arrangement, Adamus is expected to work with the Ministry of Lands and Natural Resources, the Minerals Commission and the Ghana Revenue Authority to identify practical measures to resolve the challenges facing its operations.
CoCPIES said the intervention was important because Ghana’s indigenisation agenda must translate into practical support for local businesses, particularly those struggling with the financial and operational demands of the mining industry.
“The President’s intervention sends an important signal that Ghana’s indigenisation agenda must go beyond rhetoric,” the coalition said, arguing that Ghanaian-owned companies must be given the opportunity to survive, expand and compete effectively.
Push for mining finance
The coalition said Adamus was not an isolated case, pointing to other Ghanaian-owned or significantly Ghanaian-participated companies including Heath Goldfields, Engineers and Planners, Prestea Sankofa and Asante Goldfields.
According to the group, these companies face operational and financing constraints that could limit their ability to retain value for Ghana if not addressed.
CoCPIES is therefore calling for targeted financing mechanisms to help indigenous mining companies expand their participation across the mining value chain.
Among its proposals is the creation of a dedicated local content fund for mining, modelled on the financing approach used in Ghana’s petroleum industry.
The coalition is also proposing that the Mineral Income Investment Fund (MIIF) acquire strategic equity stakes in promising Ghanaian mining companies, while government introduces incentives for indigenous miners to list on the Ghana Stock Exchange.
It further wants measures to facilitate pension fund investment in the sector and promote joint ventures that can strengthen the balance sheets of Ghanaian mining companies and improve their access to capital.
Beyond ownership
CoCPIES said Ghana’s objective should extend beyond simply increasing the number of Ghanaians participating in mining.
It argued that countries that have successfully converted mineral wealth into broad-based economic development have done so by ensuring domestic participation in both extraction and value creation.
The coalition said Ghanaian participation could include direct involvement by state-owned and indigenous private companies, as well as strategic equity investments in viable foreign-owned mining operations.
It is therefore calling for a national roadmap to tackle the financing, technology, operational and regulatory challenges facing indigenous mining companies.
The roadmap, it said, should form part of a broader strategy to put Ghanaian businesses at the centre of the extraction, processing and beneficiation of the country’s mineral resources.
The coalition said the intervention in the Adamus case should now trigger a wider discussion about how Ghana can strengthen indigenous participation and capture more of the economic value generated from its mineral resources.
