Ghana’s mining industry is warning that rising fiscal pressures could undermine future investment, mine expansion and long-term competitiveness, as the sector’s effective tax burden climbs to 58 percent.
The caution was delivered by the Immediate Past President of the Ghana Chamber of Mines, Michael Edem Akafia at the Chamber’s 98th Annual General Meeting in Accra, where industry leaders raised concerns over the cumulative impact of new taxes, royalties and statutory charges on mining operations.
According to the Chamber’s annual report, mining companies faced significant cost pressures in 2025, driven by the appreciation of the cedi, higher operating expenses and increased input costs linked partly to geopolitical tensions in the Middle East.
The Chamber noted that recent changes to Ghana’s fiscal regime have further intensified the burden on mining firms.
Government increased the Growth and Sustainability Levy (GSL) from 1 percent to 3 percent before subsequently reducing it to 1 percent in March 2026. However, the mineral royalty regime was revised from a fixed 5 percent rate for mines without Development Agreements to a sliding-scale royalty structure.
While the reduction in the GSL was welcomed, the Chamber argued that the higher royalty rates imposed during periods of elevated commodity prices would significantly increase the fiscal charge on gross mineral revenues.
“When combined with corporate income tax, the State’s free carried interest and other statutory impositions, the revised regime raises the overall tax burden on mining to an estimated 54 percent to 58 percent,” the report stated.
The Chamber warned that such levels place Ghana among mining jurisdictions with some of the highest effective tax burdens globally.
Industry leaders argued that the development could affect project economics, reduce profit margins, discourage exploration activities and limit investments needed to extend the lifespan of mature mines.
The report stressed that royalties are levied on gross mineral revenue rather than profitability, a situation that could particularly affect high-cost operations during periods of market volatility.
As a result, the Chamber is calling on government to undertake a holistic review of the mining fiscal regime and align Ghana’s tax structure more closely with competing mining destinations.
Mining Communities Yet to Feel Full Benefits
Beyond taxation, the Chamber also expressed concern that many mining communities continue to see limited development despite the sector’s substantial contribution to national revenue.
The report observed that conditions in several mining districts remain inconsistent with the industry’s role as one of Ghana’s largest contributors to domestic revenue.
“This reinforces public concern that mining revenues are not translating visibly into local development,” the Chamber noted.
The industry body therefore renewed its longstanding proposal that at least 30 percent of mineral royalties be returned directly to mining communities to support local development initiatives.
It also reiterated calls for the establishment of a Mineral Revenue Management Act to provide a transparent and accountable framework for the collection, allocation and utilisation of mineral revenues.
Chamber Supports Mining Law Review
On regulatory reforms, the Chamber welcomed the ongoing review of the Minerals and Mining Act by the Ministry of Lands and Natural Resources and the Minerals Commission.
While supporting government’s objective of maximising national benefits from mining, the Chamber urged policymakers to ensure that any reforms preserve the sector’s long-term competitiveness and attractiveness to investors.
The comments come at a time when Ghana’s mining industry remains the country’s largest export earner and a major source of foreign exchange, with gold production reaching record levels in 2025.
Industry executives, however, maintain that sustaining future growth will require a careful balance between increasing state revenues and maintaining an investment climate capable of attracting new capital into exploration, mine development and expansion projects.
