Ghana Chamber of Mines calls for balanced fiscal framework to sustain mining growth

The Ghana Chamber of Mines has called on the government to adopt a balanced and sustainable fiscal framework that will allow the mining sector to grow while ensuring increased and lasting national revenue.

The Chamber says it supports the government’s objective of securing greater benefits from Ghana’s mineral resources, particularly at a time of high global gold prices, but has expressed concern that proposed amendments to the mining fiscal regime could undermine investment and long-term revenue generation if not carefully structured.

Commenting on a recent Reuters interview by the Chief Executive Officer of the Minerals Commission, the Chief Executive Officer of the Ghana Chamber of Mines, Kenneth Ashigbey, said the industry is not opposed to the government seeking higher returns for Ghanaians.

“Our members are not opposed to the government seeking greater returns for Ghanaians, and we understand the rationale behind a sliding-scale approach. What we are advocating for is a sweet spot, one where the government secures sustainable, increasing revenues for national development while the industry can expand, reinvest, and fully take advantage of the current high gold prices. Unfortunately, the current proposal does not strike that balance.”

According to the Chamber, while higher gold prices present an opportunity to boost output and national earnings, the proposed fiscal changes risk constraining investment expansion and may not deliver sustainable revenues over the long term.

The Chamber welcomed ongoing engagement by the Minister for Lands and Natural Resources with industry stakeholders, describing the dialogue as constructive and necessary for 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,” Ing. Ashigbey added.

The Chamber noted that large-scale mining companies currently pay a 3 per cent Growth and Sustainability Levy (GSL), in addition to royalties, both of which are applied to gross revenue rather than profits. This, it explained, means that operating and capital costs are not factored into tax obligations.

Under the existing fiscal regime, mining companies are subject to a 5 per cent royalty on gross revenue, a 3 per cent Growth and Sustainability Levy, 10 per cent free carried interest for the State, 35 per cent corporate income tax, and an 8 per cent dividend tax. The Chamber said Ghana is already positioned at the higher end of the global Average Effective Tax Rate for mining jurisdictions.

It warned that the proposed introduction of a sliding royalty scale of between 5 and 12 per cent on gross revenue could further exacerbate the situation, potentially leading to reduced investment, stalled projects, and job losses within the sector.

On Stability and Development Agreements, the Chamber said while it supports a review of these instruments, it does not support their outright abolition. It explained that such agreements are critical in an industry characterised by significant upfront capital investment and long-term project timelines.

According to the Chamber, Stability and Development Agreements should be reviewed and strengthened where necessary, rather than discarded entirely, similar to the government’s approach to tax exemptions.

The Ghana Chamber of Mines reaffirmed its commitment to working with the government to develop a competitive, transparent, and sustainable fiscal regime that maximises national benefit while safeguarding the continued growth and resilience of Ghana’s mining industry.