The Ghana Chamber of Mines has reaffirmed its commitment to partnering with the government to ensure the nation derives maximum value from its mineral wealth, while cautioning that proposed fiscal amendments could inadvertently stifle long-term investment.
While acknowledging the government’s objective to secure greater national benefits,particularly during the current surge in gold prices, the Chamber expressed concern that the proposed sliding-scale royalty system may hinder expansion and undermine revenue sustainability.
Reacting to recent comments made by the Minerals Commission regarding potential tax adjustments via a press release, the CEO of the Ghana Chamber of Mines, Kenneth Ashigbey, emphasized the need for a collaborative approach.
He noted that while members are not opposed to the government seeking greater returns, the industry is advocating for a “sweet spot” where the state secures increasing revenues for development without stripping the industry of its ability to reinvest and capitalize on high gold prices. According to Ing. Ashigbey, the current proposal fails to strike this critical balance.
The Chamber highlighted that Ghana’s mining sector already faces one of the highest Average Effective Tax Rates (AETR) globally. Under the current regime, large-scale miners are subject to a 5 per cent royalty and a 3 per cent Growth and Sustainability Levy, both of which are applied to gross revenue rather than profit. When combined with a 35 per cent corporate income tax, 10 per cent free carried interest for the state, and an 8 per cent tax on dividends, the fiscal burden is significant.
The Chamber warned that the proposed sliding scale, which could escalate royalties to 12 per cent of gross revenue, would further exacerbate this pressure. Because these taxes do not account for operating or capital costs, such a hike could lead to reduced investments, stalled projects, and widespread job losses across the sector.
On the subject of Stability and Development Agreements, the Chamber advised against their outright abolition. These instruments are said to be vital for an industry characterized by massive upfront capital requirements and decades-long investment horizons.
The Chamber suggested that, similar to the government’s approach to Tax Exemptions, these agreements should be reviewed and strengthened where necessary rather than discarded entirely.
Despite these concerns, the Chamber welcomed the ongoing dialogue with the Minister for Lands and Natural Resources, Emmanuel Armah Buah, describing the engagement as essential for achieving a mutually beneficial outcome.
Ing. Ashigbey concluded by stressing that meaningful consultation remains the most effective way to develop a competitive, transparent, and sustainable fiscal regime that supports both the national treasury and the long-term resilience of Ghana’s mining industry.
