The Ghana Chamber of Mines had called for a fiscal framework that supported mining growth while securing state revenue, saying this was needed to ensure Ghanaians benefited sustainably from mineral resources amid high gold prices.

The Chamber said it was not opposed to the government’s aim of increasing national returns from mining but warned that proposed amendments to the fiscal regime could constrain investment and limit output expansion, undermining long-term revenue mobilisation.

It said the structure of the proposed changes risked discouraging reinvestment by mining firms at a time when higher prices should have supported growth across the value chain.

The concerns followed comments by the Chief Executive Officer (CEO) of the Minerals Commission, Isaac Tandoh, in a recent interview with Reuters on proposed changes to royalties and other fiscal measures in the sector.

The CEO of the Chamber, Kenneth Ashigbey, said the industry accepted the logic of a sliding-scale approach but believed the current proposal failed to strike the right balance between state revenue and industry expansion.

“Our members were not opposed to the government seeking greater returns for Ghanaians, but the current proposal did not achieve a position where revenues increased while companies reinvested and expanded output,” he said.

Taxes

The Chamber noted that large-scale mining firms currently paid a three per cent Growth and Sustainability Levy on gross revenue, in addition to royalties that were also charged on gross revenue rather than profits.

It said Ghana already ranked high on the global Average Effective Tax Rate for mining, citing a five per cent royalty on gross revenue, a three per cent Growth and Sustainability Levy, a 10 per cent free carried interest for the state, a 35 per cent corporate income tax and an eight per cent dividend tax.

According to the Chamber, a proposed increase in royalties to a sliding scale of between five per cent and 12 per cent on gross revenue could worsen the burden, potentially leading to reduced investment, delayed projects and job losses in the sector.

Agreements and dialogue

On stability and development agreements, the Chamber said it supported a review of the instruments but opposed their abolition, arguing that they were vital in an industry with high upfront capital costs and long investment horizons.

It said the agreements should be strengthened and reviewed, as was done with tax exemptions, rather than removed entirely, to preserve investor confidence and planning certainty.

The Chamber welcomed ongoing engagement by the Ministry of Lands and Natural Resources, saying dialogue with stakeholders was essential to achieving outcomes that benefited both the state and the industry.