GHANA’S Chamber of Mines has raised concerns that sweeping fiscal reforms could damage the country’s attractiveness to mining investors and hamper production growth.
The industry body, representing major producers, warned on Monday in an article by Reuters that proposals to abandon long-term stability pacts and substantially increase royalty rates would place Ghana at a competitive disadvantage globally.
Africa’s leading gold producer plans to terminate stability agreements with operators including Newmont, AngloGold Ashanti and Gold Fields under changes aimed at boosting state revenue and addressing licence violations, said Reuters.
A draft bill due before parliament by March would introduce royalties starting at nine percent, climbing to 12% when gold exceeds $4,500 per ounce — roughly twice the present 3-5% range.
Kenneth Ashigbey, the chamber’s CEO, said the organisation supported the concept of a sliding-scale royalty system. “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,” he said.
“The current proposal does not strike that balance,” he added.
The chamber noted that companies already face a three percent growth levy, 35% corporate income tax, eight percent dividend tax and a 10% state carried interest. It said it welcomed continuing discussions with Ghana’s lands and natural resources minister.
