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The Ghana Chamber of Mines has reiterated its commitment to working with government to ensure Ghanaians derive maximum and sustainable benefits from the country’s mineral resources, while cautioning against fiscal measures that could undermine long-term growth.
In a statement issued on Friday, the Chamber said it supports government’s objective of securing greater national benefit from mining, especially amid high global gold prices. However, it expressed concern that the proposed amendments to the fiscal regime, as currently structured, risk constraining investment expansion and may not deliver sustainable revenues over time.
Commenting on recent remarks by the Chief Executive Officer of the Minerals Commission, the Chief Executive Officer of the Ghana Chamber of Mines, Kenneth Ashigbey, said the industry is not opposed to higher returns for the state. He stressed, however, that the current proposal fails to strike a “sweet spot” that allows government to increase revenue while enabling companies to reinvest and expand operations.
According to the Chamber, meaningful consultation with industry stakeholders is critical to developing a fiscal framework that enhances national benefit without eroding Ghana’s competitiveness as a preferred mining destination. It therefore welcomed the ongoing engagement by the Minister for Lands and Natural Resources, describing the dialogue as constructive.
The Chamber noted that large-scale mining companies currently pay a 3% Growth and Sustainability Levy, in addition to a 5% royalty on gross revenue. These, together with corporate income tax, free carried interest for the state, and dividend taxes, already place Ghana at the higher end of the global Average Effective Tax Rate for mining jurisdictions.
It warned that the proposed sliding-scale royalty of between 5 and 12% on gross revenue could further exacerbate the tax burden, potentially leading to reduced investments, stalled projects, and job losses within the sector.
On Stability and Development Agreements, the Chamber said it supports a review and strengthening of these instruments but opposes their outright abolition, noting their importance in an industry characterised by significant upfront capital requirements and long-term investment horizons.
The Ghana Chamber of Mines reaffirmed its readiness to collaborate with 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.
