Digging Deep Dialogue 15: Ghana Chamber of Mines

Digging Deep (DD) travels to Ghana -The Gateway to Africa on West Africa's Atlantic Coast in pursuit of a thought-provoking conversation with Sulemanu Koney (SK), esteemed CEO of The Ghana Chamber of Mines . We deliberate with a true proponent of local content, someone keen to see more being done on value retention in mineral resource rich countries in Africa and a leader who understands that Africa is at the heart of the global energy transition. Let's dig deeper and unpack our Dialogue with Sulemanu.

DD: Welcome to the Digging Deep Dialogue Sulemanu, it’s a pleasure and honour to have you. Can you please tell us more about yourself and your role as the CEO of Ghana Chamber of Mines?

SK: As you already know, I am Sulemanu Koney, the current Chief Executive Officer of the Ghana Chamber of Mines. Before assuming the position of CEO, I was a Director of Analysis, Research, and Finance at the Ghana Chamber of Mines. I also worked for Shell before joining the Chamber of Mines. In terms of education, I am a Fellow of the CIM | The Chartered Institute of Marketing (UK). I also have a bachelor’s degree in Chemical Engineering and a postgraduate degree in International Business.

As the CEO of the Chamber, my primary role is to work with duty-bearers and other stakeholders to foster an ecosystem that supports mining business and broad-based wealth creation on the back of the mining industry. Further, the Chamber strives to position Ghana as the preferred destination for mining capital through its advocacy activities. These efforts also attempt to diversify the country’s competitive advantage from core mining activities to include mining support services. I am also responsible for the day-to-day administration of the Chamber’s Secretariat.

I also have the honour of serving as the Executive Director of the ECOWAS Federation of Chamber of Mines , ( Chambers of Mines of West Africa) a relatively young organization which is hosted by the Ghana Chamber of Mines.

DD: Value retention in mineral resource rich countries such as Ghana is non-negotiable! What can be done to accelerate a shift from the traditional narrative of minimal participation to key players of African countries in the mining value chain? 

SK: It is trite knowledge that the limited participation of local people in mining is primarily due to funding constraints. To overcome this challenge, some governments in Africa have resorted to direct state participation or setting up state-backed special-purpose vehicles.

In Ghana, the Government has set up a sovereign mineral wealth fund, the Minerals Income Investment Fund, to acquire strategic interest in mining companies. This entity has so far acquired interest in two mining companies in Ghana. In other countries, such as Tanzania, the government has set up a state mining company, STAMICO, that participates directly in mining or partners with multinational mining firms in joint venture mining projects. Further, there is a need to position local stock exchanges as potential sources of capital for projects on the continent.

Exploration firms may be encouraged to raise funds from a local bourse to fund their operations or mine construction. The foreign firm may be allowed to source funds abroad if the local capital market is not deep enough to meet the capital requirements of the project. In this way, the locals are able to participate in mineral extraction as owners of the project. Again, the government can use local content provisions to facilitate the participation of indigenous people in various aspects of the mining value chain. In Ghana, some aspects of the support services industry are restricted to Ghanaians or require a foreign firm to partner with locals. These initiatives help grow the capacity of local firms and in some cases, assist local firms in overcoming access to capital constraints.

Lastly, I want to highlight the opportunities in the value chain industry from a regional perspective. Most countries tend to be inward-looking in enacting local content policies. We should also put a premium on regional content initiatives, particularly on the back of the Africa Mining Vision whose realization will be predicated on vibrant regional markets of SADC Secretariat , ECOWAS Commission etc. taking into consideration geographical symmetry. Ghana could be the nerve center for gold refining in West Africa given its access to competitively priced electricity and preeminent position in gold production whilst other countries will focus on aspects of the mining ecosystem that leverage their individual strength.

DD: How can resource policy in Africa spearhead the crossroads of local content and benefaction of mining investments in local communities?

SK: Already, local content initiatives are contributing to value retention in local communities. In the case of Ghana, local content in the supply of goods and services has led to increased participation of local people in the mining value chain. However, a lot of the benefits associated with local content initiatives in the procurement of goods and services accrue to the retail sector rather than manufacturing where we believe the country can generate better economic value added. I believe that local content should be used to spur manufacturing which has greater employment and fiscal revenue generation potential than retailing.

At the Ghana Chamber of Mines, we focus on synergies between the mining and manufacturing as well as other sectors in the context of local content initiatives. For instance, the Chamber worked with a local entrepreneur to set up a plant for grinding media. Currently, we are collaborating with a number of investors who have shown interest in manufacturing activated carbon. These initiatives add more value to the country than just encouraging the retailing of mining consumables and other inputs.

DD: From Investing in African Mining Indaba to Prospectors & Developers Association of Canada (PDAC) in the first quarter of 2024, the sentiment remains the same, there is no EV market without African critical metals. How does Africa harness this pivotal moment in the global energy transition?

SK: Undoubtedly, Africa is at the heart of the global energy transition. Most governments are shifting their policies and legislation from suppliers of raw materials for the EV market to being the nerve centre for value-added products for the EV market. In Ghana, for instance, the government has developed a separate policy framework for critical minerals. The framework contains express provisions for value addition to the critical minerals produced in Ghana.

Moreover, the Ghanaian government has set up value addition industries through its special purpose vehicles, such as Ghana Integrated Aluminium Development Corporation (GIADEC) and Ghana Integrated Iron and Steel Development Corporation (GIISDEC). These entities are also linked to the country’s Automotive Development Policy, which seeks to make the country the hub for the automotive industry in West Africa. In my view, an integrated continental policy that harnesses each country’s competitive advantage in the EV value chain would change the narrative on the continent’s place in the global energy transition.

DD: Playing it forward to Africa’s next generation. How do you envisage Ghana Chamber of Mines shaping its approach and mandate for the future of the next generation of mining leaders?

SK: The Chamber’s resilience has been built on its ability to evolve and address stakeholders' shifting priorities proactively. I am confident that the next generation of mining leaders will continue to scan their environment and tailor the Chamber’s strategies to developments within the local, national, and global economy. We have also built a pipeline of leaders who are poised to steer the affairs of the Chamber and the mining industry to greater heights.

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