The Ghana Chamber of Mines has urged the government to rethink its proposed mining fiscal framework, emphasizing the need to balance state revenue with sustainable industry growth. The Chamber highlighted that with gold prices remaining high, Ghana should ensure that the benefits of its mineral resources reach its citizens while also encouraging further investment in the sector.

While the Chamber supports the government’s goal of increasing national returns from mining, it cautioned that the current amendments to the fiscal regime could have the opposite effect. According to industry leaders, stricter royalty rates and levies risk constraining investment, limiting output expansion, and ultimately undermining long-term revenue mobilization.

Chamber CEO Kenneth Ashigbey explained that the proposed sliding-scale royalty system, which could see rates rise to 12% of gross revenue, might discourage mining companies from reinvesting in operations. “Our members are not opposed to greater returns for Ghanaians,” Ashigbey said, “but the current proposal does not strike the right balance between increasing state revenue and supporting industry growth.”

Currently, large-scale mining firms in Ghana pay multiple levies, including a 3% Growth and Sustainability Levy on gross revenue, royalties, a 35% corporate income tax, and an 8% dividend tax. The Chamber warned that additional royalty hikes could heighten the tax burden, potentially delaying projects, reducing investment, and affecting jobs in the sector.

The Chamber also addressed the role of stability and development agreements, advocating for their review rather than abolition. These agreements, it said, are critical for investor confidence due to the high upfront costs and long-term horizons of mining projects. The organization welcomed ongoing dialogue with the Ministry of Lands and Natural Resources, stressing that collaborative engagement is key to policies that benefit both the state and the mining industry.

source: graphics