The Ghana Chamber of Mines has cautioned that proposed changes to the country’s mining fiscal regime could undermine long-term investment and sustainable revenue generation if not carefully balanced, despite the current surge in global gold prices.
In a press release, the Chamber reaffirmed its commitment to working collaboratively with government to ensure that Ghanaians derive maximum and sustainable benefits from the nation’s mineral resources.
While acknowledging government’s objective of securing greater national returns from mining, the Chamber warned that the proposed amendments, as presently structured, risk constraining investment expansion and may fail to deliver sustainable revenues over time.
Commenting on recent public remarks by the Chief Executive Officer of the Minerals Commission, CEO of the Ghana Chamber of Mines, Ing. Kenneth Ashigbey, stressed that the industry is not opposed to reforms aimed at increasing national benefit.
However, he argued that the proposed fiscal changes do not strike the necessary balance between state revenue and industry growth.
According to him, the industry is advocating for a “sweet spot” where government secures increasing and sustainable revenues while mining companies are able to expand, reinvest and fully take advantage of favourable gold prices.
The Chamber welcomed ongoing engagements by the Minister for Lands and Natural Resources with industry stakeholders, describing such consultations as essential to developing a competitive and mutually beneficial fiscal framework.
It emphasised that meaningful dialogue is critical to ensuring that reforms enhance national benefit without undermining Ghana’s attractiveness as a mining destination.
Currently, large-scale mining companies in Ghana are subject to a 3 per cent Growth and Sustainability Levy (GSL), in addition to royalties applied on gross revenue rather than profits.
The Chamber noted that Ghana already ranks at the higher end of the global Average Effective Tax Rate (AETR) for mining jurisdictions.
The existing fiscal regime includes a 5 per cent royalty on gross revenue, a 3 per cent GSL on gross revenue, a 10 per cent free carried interest for the state, 35 per cent corporate income tax, and an 8 per cent tax on dividends.
Against this backdrop, the Chamber warned that the proposed sliding-scale royalty regime of between 5 per cent and 12 per cent on gross revenue could further exacerbate the tax burden on the industry.
It cautioned that such measures may result in reduced investment, stalled projects and potential job losses within the mining sector.
On Stability and Development Agreements, the Chamber expressed support for their review but opposed their outright abolition, arguing that these agreements are critical in an industry characterised by high upfront capital requirements and long-term investment horizons.
Instead, the Chamber recommended that such agreements be reviewed and strengthened where necessary, similar to recent reforms in the area of tax exemptions.
The Ghana Chamber of Mines reiterated its commitment to working with the government to develop a competitive, transparent and sustainable fiscal regime that maximises national benefit while safeguarding the growth and resilience of Ghana’s mining industry.
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