The Ghana Chamber of Mines has responded to ongoing discussions about key issues in the mining sector, particularly the proposed increase in the Growth and Sustainability Levy (GSL) and concerns raised by the Institute of Economic Affairs (IEA) regarding the country’s natural resource management.
In a press statement copied to The High Street Journal (THSJ), the Chamber acknowledged the renewed public interest in optimizing Ghana’s mineral wealth but sought to clarify certain misconceptions.
It said the proposed increase in the levy from 1% to 3% has sparked debate, with proponents arguing that Ghana has not fully captured economic rent from its natural resources. However, the Chamber emphasized that mineral rent, the residual value after covering extraction costs and investor returns has historically averaged below 3 per cent of GDP.
It said while gold prices have surged in recent years, the Chamber noted that not all mining companies have enjoyed proportional profit increases due to varying operational costs and investment needs. Additionally, the levy would impact manganese and bauxite producers, even though these minerals have not experienced the same price hikes as gold, creating an uneven financial burden.
Despite these concerns, the Chamber reaffirmed its commitment to collaborating with the Ministries of Lands and Natural Resources and Finance to explore solutions that balance industry sustainability with government revenue needs.
The statement said the Chamber traced Ghana’s mining policy evolution from the 1960s, when nationalization efforts led to economic downturns, to the current lease-based royalty-tax model, which aligns with global best practices.
It also highlighted ongoing efforts to enhance local participation in the sector, including initiatives with the Ghana Stock Exchange and the Minerals Commission to encourage the listing of mining firms.
Between 2020 and 2023, Chamber members spent an annual average of $2.87 billion on local goods and services while contributing $1.19 billion in taxes and $32 million in corporate social investments.
Furthermore, about 75% of mineral revenues were repatriated through Ghanaian financial institutions, countering claims that investors retain a disproportionate share offshore.
The Chamber also renewed its call for a legislative framework similar to the Petroleum Revenue Management Act to ensure greater transparency and accountability in mining revenue utilization.
The statement expressed the Chamber’s support for increased funding for the Ghana Geological Survey Authority (GSA) to enhance resource assessment and position Ghana for independent mineral development or strategic partnerships. It also commended recent government efforts to curb illegal mining and protect the country’s forests and water bodies.
