Ghana Chamber of Mines warns proposed royalty hikes risk deterring investment
The Ghana Chamber of Mines has expressed serious concerns over proposed changes to the country’s mining fiscal regime, warning that the amendments in their current form could discourage new investment and hinder the sector’s ability to capitalise on record-high global gold prices.
The chamber reaffirmed its willingness to partner the government to maximise benefits from mineral resources for Ghanaians. It emphasised that it does not oppose efforts to increase state revenue but believes the proposed measures fail to strike the right balance between higher returns and sustained industry growth.
In a detailed statement, the Chamber’s Chief Executive Officer, Kenneth Ashigbey, responded directly to recent remarks by the Chief Executive Officer of the Minerals Commission in a Reuters interview.
“Our members are not against government seeking higher returns for Ghanaians, and we appreciate the logic behind a sliding-scale framework. What we are calling for is an optimal balance — one that allows government to secure growing and sustainable revenues for development, while enabling the industry to expand, reinvest and fully capitalise on the current high gold prices. Unfortunately, the present proposal does not achieve that balance,” he stated.
Large-scale mining
The chamber highlighted that large-scale mining companies already face a heavy tax burden, including a five per cent royalty on gross revenue, a three per cent Growth and Sustainability Levy also on gross revenue, 35 per cent corporate income tax, 10 per cent free carried state interest, and other levies.
It noted that Ghana ranks among the higher-taxed mining jurisdictions globally, as measured by the Average Effective Tax Rate (AETR).
The proposed introduction of a sliding-scale royalty ranging from five per cent to 12 per cent on gross revenue, the Chamber argued, would further strain operators, potentially leading to reduced investment, project delays and job losses.
Stability and development agreements
Regarding stability and development agreements, the Chamber supports a review but strongly opposes their outright removal. Such agreements, it stressed, are essential for an industry that requires massive upfront capital and decades-long investment horizons.
The chamber welcomed continued dialogue with the Minister for Lands and Natural Resources, describing the consultations as constructive and necessary for crafting policies that benefit both the state and the industry.
It concluded by reiterating its commitment to working collaboratively with the government to develop a transparent, competitive, and sustainable fiscal framework that maximises long-term national benefits while preserving Ghana’s attractiveness as a mining destination.