The chamber of mines has warned that proposed changes to the fiscal regime risk curbing investment and undermining long-term revenue growth, even as the government seeks a larger share of windfall gains from elevated gold prices.
The Ghana Chamber of Mines said it supports the state’s objective of securing greater national benefit from mineral resources but raised concerns that amendments under consideration could weaken Ghana’s competitiveness as a mining destination. The industry group said the proposals, as currently structured, may constrain expansion and fail to deliver sustainable revenues over time.
“Our members are not opposed to Government seeking greater returns for Ghanaians, and we understand the rationale behind a sliding-scale approach,” Chamber Chief Executive Officer Kenneth Ashigbey said in comments following a recent Reuters interview by the head of the Minerals Commission.
“What we are advocating for is a sweet spot-one, where Government secures sustainable, increasing revenues for national development while the industry is able to expand, reinvest, and fully take advantage of the current high gold prices. Unfortunately, the current proposal does not strike that balance.”
At the center of the debate is a proposed sliding-scale royalty of between 5% and 12% on gross revenue, which the Chamber said would add pressure to an already heavy tax burden on large-scale miners. Ghana currently levies a 5% royalty on gross revenue, a 3% Growth and Sustainability Levy, 35% corporate income tax, an 8% dividend tax, and holds a 10% free carried interest in mining projects.
The Chamber noted that both royalties and the Growth and Sustainability Levy are applied to gross revenue rather than profit, meaning operating and capital costs are not factored into the tax base. It said Ghana already sits at the higher end of the global Average Effective Tax Rate for mining jurisdictions, and further increases could lead to reduced investment, stalled projects and job losses.
The industry body welcomed ongoing engagement by the Minister for Lands and Natural Resources with mining companies, describing the dialogue as essential to achieving mutually beneficial outcomes.
“Meaningful consultation is critical to developing a fiscal framework that enhances national benefit without undermining Ghana’s competitiveness as a mining destination,” Ashigbey said.
On stability and development agreements, the Chamber said it supports a review of the instruments but opposes their outright abolition. Such agreements, it said, are critical in an industry marked by high upfront capital requirements and long investment horizons. It argued that, as with recent reforms to tax exemptions, the agreements should be strengthened where necessary rather than scrapped entirely.
The Chamber, said it remains committed to working with government to design a competitive, transparent and sustainable fiscal regime that balances national revenue objectives with the long-term growth and resilience of the mining sector.
