Mayer Brown International’s Kwadwo Sarkodie and Prince Asafo Adjei examine the legal and institutional framework governing green minerals in Ghana, highlighting current policy directions and identifying practical considerations for investors, lenders and sponsors evaluating upstream and midstream opportunities.
A structural transformation of the energy system is taking shape as the global economy accelerates towards cleaner energy and more sustainable technologies. This transition relies on the deployment of solar power, electric vehicles, battery storage, and expanded/reconfigured grid networks, thus requiring a reliable supply of key green minerals. As a resource-rich country with a mature mining sector, Ghana has green mineral resources such as bauxite, manganese, iron ore, silica, and recently discovered lithium reserves that are of growing interest.
Ghana’s green mineral sector
Ghana’s long-standing, stable democratic governance and investor-friendly business policies make it one of Africa’s most attractive investment destinations. The mining sector, which has been a central component of Ghana’s industrial strategy and economy, is in the process of diversification.
In November 2022, the Ghanaian government announced the Energy Transition Framework at the COP27 climate change conference held in Egypt. This initiative forms part of a broader continent-wide effort by many African governments to move beyond being mere suppliers of green mineral feedstocks and capture greater value from the clean energy transition. The framework commits to a “just and equitable transition”, focusing on socio-economic growth through the use of domestic resources such as lithium and graphite to develop regional manufacturing and processing capabilities, including components for electric vehicle and battery value chains. Social and economic goals include creating new jobs, improving air quality, and achieving universal electricity access for Ghanaians.
Harnessing the economic value of this new subsector will require not only attracting significant foreign investment but also establishing strong governance.
Governance framework
The management framework for green minerals is primarily provided by Ghana’s existing mining laws, constitutional provisions, specialized bodies, and national policy. These include annual mineral rights fees, royalties of 3% to 6% of gross revenues, a 35% corporate tax rate on mining, and a 10% free carryover interest retained by the government.
The 1992 Constitution provides that all minerals in their natural state (including green minerals) found in Ghana are the property of the Republic of Ghana and vest in the President as a trust for the Ghanaian people. The main legislation is the Minerals and Mining Act 2006 (Act 703), which was subsequently amended by the Minerals and Mining (Amendment) Act 2015 (Act 900) and the Minerals and Mining (Amendment) Act 2019 (Act 995). Several state agencies play important roles in regulating and managing the green minerals subsector.
The Minerals Commission is the main government agency responsible for formulating and coordinating policies in the minerals sector and monitoring their implementation. Ghana Integrated Aluminum Development Corporation (GIADEC) is leading the development of an integrated aluminum value chain Established under the Ghana Integrated Steel Development Act 2019 (Act 988), the Ghana Integrated Steel Development Corporation (GIISDEC) is tasked with accelerating the steel industry, often in collaboration with investors.
Upgraded in 2016, the Ghana Geological Survey advises on, promotes and researches geoscientific issues related to mineral resources, including active mapping and identification of the economic mineral potential of non-traditional base metals.
Any development 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 (LI 2504), as well as securing the necessary permits under the Forestry Commission Act 1999 (Act 571) and the Water Resources Commission Act 1996 (Act 522).
Policy reforms also shape governance structures. In July 2023, the government recognized the strategic importance of green minerals and approved the Green Minerals Policy, which aims to update and complement the 2014 Minerals and Mining Policy. This latest policy aims to put in place stronger institutions to help Ghana reap the full value of lithium and other green minerals. It is also expected to prompt legislative reforms such as the Minerals and Mining Act 2006 (Act 703). For example, current legislation sets mineral royalty rates between 3% and 6%, but the new policy proposes a higher royalty regime, especially 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
Key points to consider for banks and ECAs are: (i) the robustness of the security package under Ghanaian law, including any liens on mineral rights where permitted; (ii) coordination of sales agreements with local value-added requirements; (iii) potential adjustments to royalty and local content rules under the Green Minerals Policy; (iv) environmental and social permitting milestones under the Environmental Protection (Environmental Assessment) Regulations 2025; (v) the interface between state participation (10% freehold interest and additional negotiated interest) and the distribution waterfall;
Short-term policy developments, particularly regarding royalties and local participation, should be monitored and reflected in project construction, financing terms, and pricing. By paying disciplined attention to environmental and social compliance and allowing supply adjustments, investors can position projects to meet both Ghana’s value-add objectives and international market demands.
conclusion
Ghana is endowed with energy transition minerals, which positions the country to play a key role in global decarbonisation. Stable democratic institutions, mature mining laws, and proactive policy reforms create a reliable platform for capital deployment across exploration, mining, processing, and supporting infrastructure. The characteristics and factors discussed above provide an overview of the legal and institutional framework governing green minerals in Ghana, highlight current policy directions, and help identify practical considerations for investors, lenders, and sponsors.
Author’s note
Written by Kwadwo Sarkodie, Partner at Mayer Brown International LLP, and Prince Asafo Adjei, Associate at Sam Okudzeto & Associates / Mayer Brown International LLP.
The article is available online: https://www.globalminingreview.com/mining/23122025/black-star-green-minerals-governance-and-opportunities-in-ghanas-critical-minerals-sector/
