Chamber of Mines Warn Proposed Tax Changes Could Curb Investment Despite High Gold Prices

The Ghana Chamber of Mines has warned that proposed changes to the country’s mining fiscal regime could discourage investment and undermine long-term revenue growth, even as government seeks to benefit from elevated gold prices.

While the Chamber says it supports the state’s objective of securing greater national value from mineral resources, it cautions that amendments currently under consideration may weaken Ghana’s competitiveness as a mining destination and constrain expansion within the sector.

“Our members are not opposed to Government seeking greater returns for Ghanaians, and we understand the rationale behind a sliding-scale approach,” Chamber Chief Executive Officer Kenneth Ashigbey said, following comments made in a recent Reuters interview by the Chief Executive of the Minerals Commission.

“What we are advocating for is a sweet spot — one where Government secures sustainable, increasing revenues for national development while the industry is able to expand, reinvest, and fully take advantage of the current high gold prices. Unfortunately, the current proposal does not strike that balance,” he added.

At the centre of the debate is a proposed sliding-scale royalty of between 5 percent and 12 percent on gross revenue. The Chamber argues that such a move would significantly increase the tax burden on large-scale miners operating in Ghana.

Currently, mining companies in Ghana are subject to a 5 percent royalty on gross revenue, a 3 percent Growth and Sustainability Levy, a 35 percent corporate income tax, an 8 percent dividend withholding tax, and a 10 percent free carried interest held by the state.

According to the Chamber, both royalties and the Growth and Sustainability Levy are applied to gross revenue rather than profits, meaning operating costs and capital expenditure are not taken into account when taxes are assessed. This, it argues, already places Ghana among jurisdictions with relatively high Average Effective Tax Rates in the global mining industry.

The Chamber warned that further increases could reduce investment appetite, delay or cancel expansion projects, and potentially lead to job losses across the mining value chain.

Despite its concerns, the industry body welcomed ongoing engagements between the Minister for Lands and Natural Resources and mining companies, describing the dialogue as essential to reaching 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,” Ashigbey said.

On stability and development agreements, the Chamber said it supports a review of the instruments but opposes their outright abolition. It noted that such agreements play a critical role in an industry characterised by high upfront capital costs and long investment horizons.

The Chamber argued that, similar to recent reforms to tax exemptions, stability agreements should be strengthened and refined where necessary rather than scrapped entirely.

The Ghana Chamber of Mines said it remains committed to working with government to design a competitive, transparent and sustainable fiscal regime that balances national revenue objectives with the long-term growth and resilience of the mining sector.

Source: Accra Street Journal

Last Updated on January 20, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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