The Ghana Chamber of Mines has called on government to adopt a balanced fiscal framework for the mining sector, warning that proposed amendments to the fiscal regime could constrain investment and undermine long-term revenue mobilisation.
In a public notice, the Chamber said while it supports government’s objective of securing greater national benefit from mining, especially amid high gold prices, he current proposals risk discouraging expansion and reinvestment in the industry.
“The Chamber is not opposed to Government’s objective of securing greater national benefit from mining, particularly in the context of prevailing high gold prices,” the statement said.
However, it cautioned that the proposed amendments, “as currently structured… risk constraining investment expansion and may not deliver sustainable revenues over the long term.”
Commenting on a recent Reuters interview by the Chief Executive Officer of the Minerals Commission, Chief Executive Officer of the Ghana Chamber of Mines, Kenneth Ashigbey, stressed the need for a middle ground that benefits both the state and industry players.
“Our members are not opposed to Government seeking greater returns for Ghanaians, and we understand the rationale behind a sliding-scale approach,” he said.
“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 engagements by the Minister for Lands and Natural Resources with industry stakeholders, describing dialogue as “constructive and essential” to achieving mutually beneficial outcomes.
“Meaningful consultation is critical to developing a fiscal framework that enhances national benefit without undermining Ghana’s competitiveness as a mining destination,” Dr Ashigbey added.
Currently, large-scale mining companies pay a 3 per cent Growth and Sustainability Levy (GSL), in addition to a 5 per cent royalty—both charged on gross revenue rather than profits.
The Chamber noted that operating and capital costs are therefore not factored into the tax burden.
It further pointed out that Ghana already sits at the higher end of the global Average Effective Tax Rate (AETR) for mining jurisdictions. The fiscal regime includes a 10 per cent free carried interest for the state, 35 per cent corporate income tax and an 8 per cent tax on dividends.
Against this backdrop, the Chamber warned that proposals to increase royalties on a sliding scale from 5 per cent to as high as 12 per cent on gross revenue “will further exacerbate the situation” and could result in “reduced investments, stalled projects and job losses in the mining industry.”
On Stability and Development Agreements, the Chamber said it supports a review of the instruments but opposes their outright abolition, arguing they are critical in an industry with high upfront capital requirements and long investment horizons.
“As the government did with tax exemptions, these agreements should be reviewed and strengthened where necessary, rather than discarded,” the statement said.
The Ghana Chamber of Mines reaffirmed its commitment to working 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.”
