Ghana’s main mining industry body has warned that proposed reforms to the country’s tax and royalty framework could deter investment and slow production.
Reuters reported last week that Africa’s top gold producer plans to eliminate long-term mining investment stability agreements and double royalties as part of sweeping changes.
These reforms, which the country’s mining regulator says are aimed at increasing state revenue and preventing companies from abusing license terms, would mean that stability agreements with Newmont, AngloGold Ashanti, and Gold Fields will not be renewed.
A draft bill expected to reach parliament by March proposes royalties starting at 9% and rising to 12% if gold reaches $4,500 per ounce or higher, roughly double the current 3%–5% range.
The Chamber of Mines, which represents major mining companies, said in a statement on Monday that it supports the principle of a sliding-scale royalty system that allows the state to earn more when gold prices are higher.
However, it cautioned that the current proposal could push Ghana further up the global effective tax curve, potentially delaying projects and putting jobs at risk.
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“We understand the rationale behind a sliding scale, but the structure must strike a sweet spot where government secures sustainable revenues while the industry continues to expand and reinvest,” said Chief Executive Kenneth Ashigbey. “The current proposal does not strike that balance.”
The chamber did not offer an alternative proposal. Ghana’s Minerals Commission and the Lands and Natural Resources Ministry did not immediately respond to requests for comment.
According to the chamber, Ghana’s large-scale miners already pay a 3% growth and sustainability levy in addition to the 3%–5% flat royalty rate, both calculated on gross revenue rather than profit, alongside a 35% corporate income tax, 8% dividend tax, and the state’s 10% free carried interest.
The group said that while stability and development agreements should be reviewed and improved, they should not be canceled outright.
The chamber also emphasized that ongoing consultations with Ghana’s lands and natural resources minister are welcome and stressed that a competitive and predictable fiscal framework is critical to sustaining investment.
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Image Credit: ABC Global Communication
