Ghana’s Chamber of Mines has cautioned that proposed reforms to the country’s mining tax and royalty regime could discourage investment, slow production and lead to job losses if implemented in their current form.
The warning follows reports that Ghana plans to abolish long-term mining investment stability agreements and significantly increase royalty rates as part of broader reforms aimed at boosting state revenue. Under the proposals, stability agreements held by major firms such as Newmont, AngloGold Ashanti and Gold Fields would not be renewed.
A draft bill expected to be laid before Parliament by March proposes a sliding-scale royalty system, starting at 9% and rising to 12% if gold prices reach $4,500 per ounce or higher—nearly double the current 3% to 5% range.
While the Chamber of Mines said it supports the principle of a sliding-scale royalty structure that allows the state to benefit from high gold prices, it warned that the current proposal would push Ghana higher on the global tax curve, potentially stalling mining projects and undermining employment.
The chamber noted that large-scale mining companies already face a heavy tax burden, including royalties, a growth and sustainability levy, corporate income tax, dividend tax and the state’s free carried interest, all largely charged on gross revenue.
It urged government to review and improve stability and development agreements rather than abolish them outright, stressing that a predictable and competitive fiscal regime is critical to sustaining investment in the mining sector.