The Africa Centre for Energy Policy (ACEP) has called on the government to adopt a comprehensive Industrial Minerals value chain strategy at the back of strengthen geological data, and local processing for Ghana to derive greater economic benefits from its vast development minerals endowments.
Ghana abounds with numerous development minerals such as limestone, kaolin, silica sand, salt and quarry materials.
According to the policy think tank, treating these minerals as a marginal sub-sector has cost the country billions in lost revenue, jobs and industrial growth opportunities.
At a time when Ghana is searching for new growth drivers beyond gold, oil and cocoa, ACEP argues that development minerals used largely in construction, manufacturing and agro-processing offer a more inclusive and sustainable pathway to industrialisation.
Globally, development minerals account for over 80 per cent of total mineral extraction, yet policy attention in Ghana continues to tilt heavily toward high-value precious minerals.
Analysis conducted by ACEP shows that domestic mineral consumption has a strong positive relationship with GDP per capita, underscoring the importance of minerals that directly feed into local industries rather than export-oriented extractives alone.
However, Ghana’s industrial minerals remain under-explored, under-processed and poorly integrated into the broader industrial policy framework.
Mabel Acquaye, Senior Policy Analyst and Monitoring & Learning Manager at ACEP disclosed these during a capacity building session for members of the Parliamentary Press Corps in Accra on the investment opportunities along Ghana’s development minerals value chain.
A legal regime not fit for purpose
According to the Policy Analyst, one of the major constraints has been the legal and fiscal framework governing development minerals. Although the Minerals and Mining Act, 2006 (Act 703) regulates all mineral categories, its design is historically geared toward high-value mining. Industrial minerals are classified as restricted minerals, with licensing procedures that mirror those for gold and other precious minerals, despite the vastly different risk profiles and investment scales involved.
She noted that, licences for industrial minerals have shorter tenures, up to 15 years, renewable once compared to 30 years for high-value minerals, a limitation ACEP says discourages long-term investment in processing facilities.
While landowners are permitted to extract certain industrial minerals for construction or agriculture without a mineral right, this provision has created regulatory ambiguities, encouraging informality and revenue leakages.
ACEP also notes that, development minerals are subjected to the same tax framework as high-value minerals, despite lower margins and higher price sensitivity, stating that, the “one-size-fits-all” approach undermines competitiveness and pushes many operators outside the formal system.
Value addition as the missing link
ACEP also places strong emphasis on value addition, through local processing as the critical lever for transforming development minerals into engines of growth beyond mere extraction. This it noted can stimulate manufacturing ecosystems, create backward and forward linkages, support import substitution and boost fiscal returns through expanded production chains.
Ghana currently imports key industrial inputs such as gypsum and feldspar, even though it has the geological potential to produce substitutes locally. Limited processing plants, high energy costs, weak linkages between mining and manufacturing, and quality consistency challenges have all constrained domestic beneficiation.
ACEP is therefore urging government to prioritise large-scale processing plants for limestone, kaolin, silica sand and salt, while supporting small and medium-sized enterprises to provide intermediate services such as crushing, sorting and calcining.
It recommends public–private partnerships to establish mineral processing zones linked to manufacturing clusters.
Governance, data and financing gaps
ACEP identifies poor data quality and weakens planning as disincentives to investors and limits the state’s ability to mobilise revenue effectively and therefore recommends the strengthening of geological mapping and reserve certification by the Geological Survey Authority.
On governance, ACEP calls for the explicit inclusion of industrial minerals and quarry value addition in mining and industrial policies, moving beyond what it describes as “symbolic local content.” Instead, local content requirements should focus on skills development, technology transfer and measurable performance benchmarks tied to licensing.
On financing, ACEP proposes blended finance instruments, credit guarantees and cooperative financing models to reduce the cost of capital and de-risk local investment.
At the regional level, it suggests leveraging ECOWAS cooperation to build export credit frameworks and regional markets for intermediate and finished mineral-based products.
A phased pathway to reform
To translate policy into action, ACEP outlines short-, medium- and long-term priorities. In the short term, it recommends national mapping, data transparency, harmonised licensing rules, incentives for local processing, standards and certification, and targeted research and development. Medium-term priorities include scaling beneficiation, developing regional processing hubs, integrating infrastructure, and deepening skills and technology transfer.
In the long run, ACP proposed that development minerals should be embedded into Ghana’s industrialisation agenda and green growth strategy, supporting diversification and regional trade in manufactured goods.
