a). i) Importance of Environmental Disclosures in Corporate Governance for Mining Companies like AML
Environmental disclosures play a crucial role in corporate governance, particularly for mining companies like Akosa Minerals Limited (AML), which operate in an industry known for significant environmental impact. These disclosures ensure transparency, regulatory compliance, and stakeholder trust while mitigating risks associated with environmental degradation.

The importance of environmental disclosures includes:

1. Regulatory Compliance and Avoiding Legal Penalties

• AML operates in a highly regulated industry where environmental compliance is strictly monitored by the Environmental Protection Agency (EPA).
• Failure to disclose environmental impact can result in fines, operational shutdowns, or loss of mining licenses.

2. Enhancing Stakeholder Trust and Social License to Operate

• Public protests like “Stop Galamsey Now” show the increasing demand for corporate accountability in Ghana’s mining sector.
• Transparent disclosures help AML build trust with communities, government regulators, and investors, ensuring long-term business sustainability.

3. Investor Confidence and Access to Sustainable Financing

• Institutional investors and ESG-focused funds require clear sustainability reporting before investing in mining companies.
• Proper disclosures on carbon footprint reduction and biodiversity protection can attract impact investors to AML.

4. Risk Management and Operational Sustainability

• Environmental risks such as water pollution, land degradation, and climate change can affect AML’s profitability and reputation.
• AML can use environmental risk assessments to implement proactive measures, such as rehabilitating degraded mining sites.
  (Any 4 relevant points @ 1 mark each = 4 marks)

ii) Key Environmental Disclosure Requirements by the EPA and Application to AML.
The Environmental Protection Agency (EPA) in Ghana mandates mining firms to publicly report their environmental impact and mitigation efforts. AML must include the following key disclosures in its sustainability reports:

1. Impact on Water Bodies and Land Use

• EPA Requirement: Mining companies must disclose how their activities affect local water bodies and ecosystems.
• Application to AML:
• AML’s lithium mining operations in the Atiwa District may contribute to water contamination due to chemical waste runoff.
• AML must report on water management strategies, such as:
• Water recycling technologies to minimize waste.
• Independent water quality assessments to monitor pollution levels.
• Restoration of affected riverbanks and wetlands.

2. Carbon Emissions and Air Pollution

• EPA Requirement: Companies must disclose carbon emissions data and efforts to reduce air pollution.
• Application to AML:
• Mining operations in Tarkwa and Prestea contribute to dust pollution and greenhouse gas emissions.
• AML must disclose:
• Annual CO₂ emissions from mining trucks and processing plants.
• Plans for transitioning to renewable energy sources (e.g., solar power at mine sites).
• Dust control measures, such as the use of water suppression systems.

3. Mine Rehabilitation and Land Reclamation Plans

• EPA Requirement: Mining companies must outline post-mining land restoration efforts to mitigate deforestation and biodiversity loss.
• Application to AML:
• AML’s open-pit gold mining in Brong-Ahafo results in deforested land and abandoned pits.
• AML must disclose:
• Tree-planting programs to restore vegetation cover.
• Land reclamation efforts, including topsoil replacement and grassland restoration.
• Partnerships with environmental NGOs to reintroduce native plant species.

4. Waste Management and Hazardous Material Disposal

• EPA Requirement: Companies must disclose how they handle toxic waste, tailings, and hazardous chemicals generated from mining operations.
• Application to AML:
• AML’s lithium processing plants generate chemical waste, which, if improperly managed, could lead to soil and groundwater contamination.
• AML must disclose:
• Proper tailings storage methods to prevent toxic spills.
• Use of eco-friendly waste treatment facilities to neutralize chemical by-products.
• Plans to reduce waste generation through improved mining techniques.

5. Biodiversity Conservation and Wildlife Protection

• EPA Requirement: Mining firms must assess and disclose their impact on forests, endangered species, and ecosystem balance.
• Application to AML:
• The Atiwa lithium mine is located near forested areas, which could disrupt local wildlife and plant species.
• AML must disclose:
• Biodiversity impact assessments conducted before mining expansion.
• Initiatives to protect natural habitats, such as creating wildlife corridors or designated conservation zones.
• Reforestation efforts to offset deforestation caused by mining activities.

6. Community Health and Safety Impact

• EPA Requirement: Companies must disclose potential health and safety risks for nearby communities and measures taken to protect them.
• Application to AML:
• Galamsey (illegal mining) activities near AML’s sites in Ghana, Mali, and Burkina Faso have resulted in water pollution and respiratory diseases.
• AML must disclose:
• Health impact studies on air and water pollution in local communities.
• Preventative measures, such as providing clean water sources to affected villages.
• Emergency response plans for industrial accidents, including community evacuation strategies.

b). i) Purpose of the State Interests and Governance Authority (SIGA) Act, 2019 (Act 990) and Its Relevance to SOEs in Ghana
The State Interests and Governance Authority (SIGA) Act, 2019 (Act 990) was enacted to regulate and oversee state-owned enterprises (SOEs) and public interest entities in which the Government of Ghana holds shares or ownership stakes.
Purpose of the SIGA Act

1. Ensure Accountability and Transparency – Establishes governance structures to ensure SOEs and state-invested companies operate efficiently and are financially accountable.
2. Enhance Performance and Efficiency – Promotes the financial viability of SOEs by setting performance targets, monitoring results, and enforcing compliance.
3. Protect the State’s Interest – Ensures the government’s investments in SOEs generate value while balancing the interests of private investors and other stakeholders.
4. Strengthen Corporate Governance – Aligns state-owned companies with global best practices in governance, risk management, and financial reporting.

Relevance to State-Owned Enterprises (SOEs) in Ghana

• Regulatory Oversight for Transparency: SOEs and companies like AML (where the government has a stake) must comply with SIGA reporting and auditing requirements.
• Performance Monitoring: SIGA ensures SOEs meet key performance indicators (KPIs) to improve profitability and service delivery.
• Investor Confidence: The Act creates a clear governance framework, making public entities more attractive to investors.
• Alignment with Global Governance Standards: Helps Ghana align with international corporate governance principles, promoting economic stability.
  Application to AML:
• As a partially state-owned entity, AML must comply with SIGA’s governance and reporting guidelines, balancing government oversight with private investor interests.

ii) Three Key Governance Requirements Under the SIGA Act and Their Influence on AML’s Corporate Governance.

1. Performance Monitoring and Financial Reporting

• Requirement: SOEs and state-invested companies must submit audited financial reports and performance statements to SIGA annually.
• Application to AML:
• AML must publish financial reports, including revenue from mining, costs, and dividend payments to the government.
• AML’s Board must ensure transparency in financial disclosures to meet SIGA and Ghana Stock Exchange (GSE) regulations.
• SIGA may evaluate AML’s profitability and efficiency, influencing investment decisions and government funding.

2. Board Composition and Corporate Governance Compliance

• Requirement: The SIGA Act mandates that SOEs and state-invested entities have structured, independent, and professional Boards of Directors.
• Application to AML:
• AML’s Board must include government representatives, independent directors, and private sector experts.
• The Board must balance the government’s interest (such as maximizing resource value) with profitability goals for private investors.
• Example: If SIGA determines that AML’s governance is weak, it may recommend Board restructuring to improve oversight.

3. Dividend Policy and Revenue Contribution to the Government

• Requirement: The SIGA Act ensures SOEs and state-invested companies contribute a fair share of profits to the national economy through dividends and taxes.
• Application to AML:
• AML must allocate a portion of its profits as dividends to the Ghanaian government while ensuring private shareholders also receive fair returns.
• AML’s financial strategy must align with SIGA’s revenue contribution targets, ensuring compliance with national development goals.
• Example: If AML expands lithium mining, SIGA may require part of the new revenue to fund government initiatives.

4. Ethical and Legal Compliance

• Requirement: SOEs and state-invested companies must comply with legal, ethical, and regulatory frameworks as mandated by SIGA. This includes adhering to Ghana’s Public Financial Management Act, anti-corruption laws, and procurement regulations.
• Application to AML:
• AML must ensure ethical business practices in all its mining operations, particularly in contract awarding, procurement, and environmental compliance.
• The company must prevent conflicts of interest in Board decisions, particularly in dealings involving government officials.
• Example: AML’s Board must implement internal audits and whistleblower protection mechanisms to detect and prevent corrupt practices.

5. Stakeholder Engagement and Public Accountability

• Requirement: The SIGA Act mandates SOEs to engage stakeholders, including local communities, civil society, and regulatory bodies, to promote transparency and social responsibility.
• Application to AML:
• AML must engage local communities affected by its mining operations, ensuring social and environmental concerns are addressed.
• The company must provide regular disclosures on environmental impact assessments (EIA) and mining activities to the Environmental Protection Agency (EPA) and SIGA.
• Example: Following the “Stop Galamsey Now” protests, AML must ensure its environmental policies are publicly communicated to maintain stakeholder trust.

6. Strategic Development and Performance Benchmarking

• Requirement: SIGA requires SOEs and state-invested companies to set clear strategic objectives and benchmark their performance against industry best practices.
• Application to AML:
• AML must develop a long-term strategic plan that aligns with Ghana’s economic development goals while maintaining global mining industry standards.
• SIGA may benchmark AML’s operational efficiency against other regional mining companies to assess its competitiveness and profitability.
• Example: AML may be required to submit a strategic roadmap for its lithium expansion, detailing how it will compete in the global battery minerals market.
  (Any 3 relevant points @ 2 marks each = 6 marks)