The Ghana Chamber of Mines has called for a balanced fiscal framework to sustain growth in the mining sector and ensure long-term national revenue generation, cautioning that proposed amendments to the current fiscal regime could undermine investment and output if not carefully structured.
In a statement, the Chamber reaffirmed its commitment to working collaboratively with the government to ensure that Ghanaians derive maximum and sustainable benefits from the country’s mineral resources, particularly in the context of prevailing high gold prices.
While the Chamber said it supports the government’s objective of securing greater national benefit from mining, it expressed concern that the proposed fiscal amendments, as currently designed, risk constraining investment expansion and may fail to deliver sustainable revenues over the long term.
Commenting on a recent Reuters interview by the Chief Executive Officer of the Minerals Commission, the Chief Executive Officer of the Ghana Chamber of Mines, Ing. Kenneth Ashigbey, said the industry is not opposed to government seeking higher returns but is advocating for a model that balances national revenue needs with industry growth.
“Our members are not opposed to the government seeking greater returns for Ghanaians, and we understand the rationale behind a sliding-scale approach. What we are advocating for is a sweet spot—one where Government secures sustainable, increasing revenues for national development while the industry can expand, reinvest, and fully take advantage of the current high gold prices,” he said, adding that the current proposal does not achieve that balance.
The Chamber welcomed ongoing engagement by the Minister for Lands and Natural Resources with industry stakeholders, describing such dialogue as constructive and essential to achieving mutually beneficial outcomes.
Ing. Ashigbey stressed that meaningful consultation is critical to developing a fiscal framework that enhances national benefit without undermining Ghana’s competitiveness as a mining destination.
Currently, large-scale mining companies in Ghana pay a three per cent Growth and Sustainability Levy, in addition to royalties, both of which are applied to gross revenue rather than profits. This means operating and capital costs are not taken into account.
The Chamber noted that Ghana already ranks at the higher end of the global Average Effective Tax Rate for mining jurisdictions. The current fiscal regime includes a five per cent royalty on gross revenue, a three per cent Growth and Sustainability Levy on gross revenue, a 10 per cent free carried interest for the State, a 35 per cent corporate income tax, and an eight per cent tax on dividends.
It warned that the proposed sliding-scale royalty of between five and 12 per cent on gross revenue could further exacerbate the tax burden, potentially leading to reduced investment, stalled projects, and job losses in the mining industry.
On Stability Agreements and Development Agreements, the Chamber said it supports a review of these instruments but opposes their outright abolition. It explained that such agreements are critical in an industry characterised by significant upfront capital requirements and long-term investment horizons.
The Chamber suggested that, as was done with tax exemptions, stability and development agreements should be reviewed and strengthened where necessary, rather than discarded.
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 ensuring the continued growth and resilience of Ghana’s mining industry.
