Chamber of Mines Calls for Moderated Fiscal Changes to Safeguard Mining Growth and Revenues
The Ghana Chamber of Mines has appealed for a well-balanced fiscal structure to support sustained growth in the mining sector and secure long-term revenue for the state, warning that proposed adjustments to the current fiscal framework could deter investment and weaken production if not carefully designed.
In a statement, the Chamber reiterated its readiness to engage constructively with government to ensure that Ghanaians continue to benefit meaningfully and sustainably from the country’s mineral endowment, particularly against the backdrop of strong global gold prices.
Although the Chamber said it aligns with government’s intention to increase national gains from mining, it cautioned that the proposed fiscal changes, in their present form, could restrict investment growth and may not yield consistent revenue benefits over time.
Responding to comments made by the Chief Executive Officer of the Minerals Commission in a recent Reuters interview, the Chief Executive Officer of the Ghana Chamber of Mines, Ing. Kenneth Ashigbey, said the industry does not oppose efforts by government to enhance returns but is calling for a framework that supports both revenue generation and sector expansion.
“Our members appreciate government’s desire to secure higher returns for Ghanaians and recognise the thinking behind a sliding-scale mechanism. However, what we seek is an optimal balance—one that allows the state to earn stable and rising revenues for development, while enabling the industry to grow, reinvest, and take full advantage of prevailing high gold prices,” he said, noting that the current proposal falls short of achieving this equilibrium.
The Chamber welcomed ongoing consultations led by the Minister for Lands and Natural Resources with key industry players, describing the engagement as positive and vital to reaching outcomes that serve the interests of all stakeholders.
Ing. Ashigbey emphasised that continuous and meaningful dialogue is crucial to shaping a fiscal regime that enhances national value without diminishing Ghana’s appeal as a competitive destination for mining investment.
At present, large-scale mining firms in Ghana are subject to a three per cent Growth and Sustainability Levy, alongside royalties, both of which are imposed on gross revenue rather than net profits, excluding operating and capital costs from consideration.
The Chamber observed that Ghana already ranks among jurisdictions with relatively high Average Effective Tax Rates in the global mining industry. The existing fiscal framework comprises a five per cent royalty on gross revenue, a three per cent Growth and Sustainability Levy on gross revenue, a 10 per cent free carried state interest, a 35 per cent corporate income tax, and an eight per cent dividend tax.
It warned that the proposed sliding-scale royalty of between five and 12 per cent on gross revenue could further intensify the tax burden, potentially resulting in lower investment levels, delayed project implementation, and employment losses within the sector.
Regarding Stability Agreements and Development Agreements, the Chamber said it supports reviewing these arrangements but is opposed to eliminating them entirely. It explained that such agreements are essential in an industry marked by heavy upfront capital investment and extended project timelines.
The Chamber suggested that, rather than abolishing these instruments, government should review and strengthen them where necessary, drawing on the approach previously applied to tax exemptions.
The Ghana Chamber of Mines reaffirmed its commitment to collaborating with government to craft a competitive, transparent, and sustainable fiscal framework that maximises national benefit while safeguarding the long-term growth and resilience of the mining sector.
