The Ghana Chamber of Mines has raised concerns that proposed increases in mining royalties could hamper investment in the country’s mining sector and threaten jobs.
In a statement, the Chamber emphasized the need for a balanced fiscal framework that allows the Government to secure sustainable national revenue while enabling mining companies to expand and reinvest, particularly in the context of high gold prices.
Commenting on a recent Reuters interview with the Minerals Commission CEO, the Chamber’s Chief Executive Officer, Kenneth Ashigbey, said: “Our members are not opposed to 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 is able to expand, reinvest, and fully take advantage of the current high gold prices. Unfortunately, the current proposal does not strike that balance.”
The Chamber welcomed ongoing engagement between the Government and industry stakeholders, highlighting that constructive dialogue is essential for achieving mutually beneficial outcomes. Ashigbey added: “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 3 percent Growth and Sustainability Levy (GSL), and both royalties and the GSL are applied to gross revenue rather than profits, meaning operating and capital costs are not considered.
Ghana already ranks among the higher end of the global Average Effective Tax Rate (AETR) for mining jurisdictions. The fiscal regime includes a 5 percent royalty on gross revenue, 3 percent GSL, 10 percent Free Carried Interest for the State, 35 percent corporate income tax, and 8 percent tax on dividends.
The Chamber warned that the proposed sliding-scale royalty increase from 5 percent to 12 percent could exacerbate the situation, potentially leading to reduced investments, stalled projects, and job losses in the industry.
Regarding Stability and Development Agreements, the Chamber expressed support for reviewing these instruments but opposed their complete abolition.
“Stability and development agreements play a critical role in an industry characterised by significant upfront capital requirements and long-term investment horizons,” Ashigbey noted, adding that they should be 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 maximizes national benefit while ensuring the continued growth and resilience of Ghana’s mining industry.
