Ghana’s main mining industry body has come out against the proposed changes to how the African country manages tax and royalty terms, stating that the move will end up resulting in creating dangers like deterring investment and slowing output.
According to a Reuters report, Africa’s top gold producer plans to scrap long-term mining investment stability agreements and double royalties under sweeping reforms. The changes, which the country’s mining regulator said were intended to boost state revenue and crack down on firms abusing the license terms, will lead to a situation where stability agreements with Newmont, AngloGold Ashanti and Gold Fields will not be renewed.
A draft bill will likely go to the African nation’s parliament by March 2026, proposing royalties starting at 9% and rising to 12% if gold hits the USD 4,500 per ounce mark or higher, roughly double the current 3%–5% range.
The Chamber of Mines, which represents big mining companies, said in its latest report that while it backed the principle of a sliding-scale royalty system, which would allow the state to earn more at higher gold prices, the current policy proposal would push Ghana further up the global effective tax curve, potentially stalling projects and costing jobs.
“We understand the rationale behind a sliding scale, but the structure must strike a sweet spot where the government secures sustainable revenues while the industry continues to expand and reinvest. The current proposal does not strike that balance,” Chief Executive Kenneth Ashigbey said. The chamber, however, didn’t offer a counterproposal.
“Ghana’s large-scale miners already pay a 3% growth and sustainability levy on top of the 3-5% flat royalty rate, both levied on gross revenue rather than profit, along with a 35% corporate income tax, 8% dividend tax and the state’s 10% free carried interest. Stability and development agreements should be reviewed and improved, but not cancelled outright,” the chamber said.
The chamber, however, welcomed ongoing consultations with Ghana’s lands and natural resources minister and said a competitive and predictable fiscal regime was essential for sustaining investment.