According to the Chamber, government already captures between 45 and 60 percent of mining profits, placing Ghana among jurisdictions with the highest government take in the global mining industry.

It warns that further fiscal tightening, especially through higher royalties, would leave little room for mining companies to remain viable and competitive.

The Chamber stressed that the recent surge in gold prices is cyclical and should not be used to justify permanent increases in royalties or other fiscal charges, noting that commodity price upswings are often followed by sharp corrections.

It also raised concerns about proposed amendments to the Minerals and Mining Act, including plans to shorten the duration of mining leases, describing such measures as inconsistent with international best practice and likely to deter long-term capital investment.

While acknowledging the sector’s strong economic contribution, mining fiscal payments rose by more than 51 percent in 2024, largely driven by large-scale operators, the Chamber warned that excessive royalty burdens could reverse recent gains.

“The challenge is the choice of price range and applicable rates, as well as whether it is surcharged on gross revenue or net margin. Currently, the sum of royalty and GSL puts the effective royalty rate at more than. 10% of gross revenue. Upward revision of the generic royalty rate would derail the viability of most mines and the country’s competitiveness relative to its peers”, Chief Executive Officer of the Ghana Chamber of Mines, Dr Ing. Kenneth Ashigbey told the press during a presentation on Tuesday. 

The Chamber said it is not opposed in principle to government’s proposal for a sliding-scale royalty regime, which captures volatility in mineral prices.

However, it cautioned that the effectiveness of such a system depends on the choice of price bands, applicable rates and whether royalties are charged on gross revenue or net margins.

Currently, the Chamber notes that the combined effect of royalties and the Growth and Sustainability Levy (GSL) places the effective royalty burden at over 10 percent of gross revenue.

It warned that any upward revision of the generic royalty rate would severely undermine the viability of most mines and weaken Ghana’s competitiveness relative to peer mining jurisdictions.

The Chamber is therefore urging government to deepen engagement with industry stakeholders to strike a sustainable balance between revenue mobilisation and maintaining a globally competitive mining sector.