New mining policies crippling sector - Minority to government

The Minority in Parliament has cautioned the government that its recent decisions in the mining sector could stifle growth, drive away foreign investment, and lead to increased job losses.

In a letter dated April 21, 2025, and addressed to the Ministers for Finance and Lands and Natural Resources, the opposition lawmakers cautioned that the government’s actions risk stifling growth, deterring foreign investment, and sparking widespread job losses within the industry.

The letter, signed by Kojo Oppong Nkrumah, Ranking Member on the Economy and Development Committee, Kwaku Ampratwum Sarpong, Ranking Member on the Lands and Natural Resources Committee, and Dr. Mohammed Amin Adam, Ranking Member on the Finance Committee, described the government’s recent policies as potentially dire for Ghana’s economic trajectory.

Central to their concerns are two new tax measures: a 3% Growth and Sustainability Levy imposed on gross mining volumes from 2025, and an additional levy expected to take effect from 2026 through 2028.

“These royalty-like levies are putting several mines already in distress into graver financial difficulties,” the Minority warned.

The opposition contended that while gold prices have surged in recent years, miners of other minerals, whose market prices remain stagnant, are being unfairly burdened by the blanket levies.

Equally contentious is the newly passed Goldbod Act, which prohibits foreign entities from trading and exporting gold from Ghana. The Minority argues that the law undermines investor confidence and violates constitutional protections.

“They say it sends the wrong message to investors and violates the 1992 Constitution by retroactively affecting existing rights,” the statement read.

Another flashpoint for the Minority is the government’s decision not to renew the mining lease of Gold Fields Ghana’s Damang mine. The group described the move as short-sighted and counterproductive.

“The government could have used the renewal to renegotiate better terms, not force out an experienced operator,” the MPs argued.

They also raised the alarm over the decision to defund 80% of the Minerals Income Investment Fund (MIIF), a key government vehicle for equity participation in the mining sector, saying the cutback signals a withdrawal from Ghana’s long-term ambition to gain meaningful ownership of its natural resources.

The letter also cited a recent violent attack at a mining site, which claimed the lives of eight people. The MPs claim the violence was “fueled by anti-investor rhetoric,” and condemned the slow pace of the investigation, which they say only heightens the fears of prospective investors.

The Minority further expressed disappointment over the abolition of Community Mining Schemes, which they believe could have been salvaged through proper regulation rather than outright cancellation. According to them, the move has created a vacuum now being exploited by illegal miners.

In their closing remarks, the opposition lawmakers called on the government to chart a new path for the mining sector that restores confidence and creates an enabling environment for growth.

“This is the time when government must bolster economic stability and attract, rather than discourage, foreign direct investment,” they said.

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