A strong consensus is emerging across Ghana’s mining sector on the need to shift from reliance on royalties to local procurement and industrial development, as key industry leaders back new standards aimed at boosting domestic manufacturing.
At the launch of the Ghana Standards for Grinding Media in Accra, the Chief Executive Officer of the Ghana Chamber of Mines, Dr. Kenneth Ashigbey, said the country’s greatest opportunity to maximise value from its mineral resources lies in strengthening local supply chains rather than focusing primarily on fiscal revenues.
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Local procurement represents the most significant pathway for Ghana to benefit from its mineral resources,” he said, noting that nearly half of mining companies’ revenue—about 46.4%—is spent on goods and services, compared to just 18.71% from taxes and royalties.
“This clearly demonstrates that the real engine for development is not royalties, but how much of the mining value chain we can localise,” he added.
From extraction to industrialisation
Dr. Ashigbey explained that Ghana must move beyond an extractive model to one anchored in value addition, job creation, and industrial growth. He stressed that local content policies should prioritise domestic manufacturing over simple trading arrangements.
Local content must drive job creation, skills development, and industrial capability—not just profit margins,” he said.
Using grinding media as a case study, he highlighted a significant gap in local production. While demand exceeds $100 million annually, only a fraction is produced locally, leaving substantial room for industrial expansion.
This is a clear opportunity to deepen Ghana’s manufacturing base and retain more value within the economy,” he noted.
Regulator backs local manufacturing push
The Chief Executive Officer of the Minerals Commission, Ing. Isaac Tandoh, described the introduction of the standards as a transformative step toward reducing import dependence and strengthening linkages between mining and local industry.
This is a moment of great pride because we are witnessing a transformative initiative in our mining sector,” he said.
He explained that the absence of clear quality benchmarks had long constrained local participation, forcing mining companies to rely on imports.
These standards give local manufacturers clear targets to meet, while offering mining companies the confidence to procure locally without compromising on quality,” he stated.
Ing. Tandoh added that the Commission will integrate the standards into its regulatory framework, including permitting and procurement monitoring, to ensure compliance and accountability.
We can now exercise our regulatory oversight with greater precision and ensure that local procurement does not come at the expense of performance,” he said.
He also assured local manufacturers of growing market opportunities but urged them to invest in technology, quality control, and capacity expansion.
You have created this opportunity—now support local producers with sustained demand and collaboration to help them scale,” he said, calling on mining firms to back the initiative with long-term contracts.
Standards as tools for industrial strategy
For the Ghana Standards Authority, the new framework represents more than a technical intervention.
Chief Executive Officer, Prof. George Agyei , described the standards as a critical instrument for industrial policy and economic transformation.
This is not just a technical achievement—it is an industrial policy triumph and a statement of national ambition,” he said.
He underscored the importance of grinding media in mineral processing, noting that its quality directly affects efficiency, output, and profitability.
Today, we have corrected that deficiency by establishing standards that reflect Ghana’s specific mining environment and operational realities,” he stated.
According to him, the standards will provide a foundation for local manufacturers to build capacity and compete effectively, while supporting Ghana’s broader localisation agenda.
Every Ghanaian manufacturer that invests to meet these standards is building technical capacity that becomes permanently embedded in our national industrial base,” he said.
Implementation now key
All three institutions stressed that the success of the initiative will depend on effective implementation, enforcement, and collaboration across the value chain.
Prof. Adjei urged mining companies to incorporate the standards into procurement systems, warning that without adoption, they risk becoming “shelf documents.”
Ing. Tandoh reaffirmed the regulator’s readiness to enforce compliance, while Dr. Ashigbey called for sustained investment in infrastructure, particularly reliable power, to support local industry.
The Chamber also signalled plans to extend similar standardisation efforts to other mining inputs, as part of a broader strategy to position Ghana as a regional hub for mining support services.
Standards are instruments of industrial strategy—they define the quality frontier and create the pathway for Ghanaian industry to grow, compete, and deliver value for the nation,” Prof. Agyei said.
