The Chief Executive Officer of the Ghana Chamber of Mines, Dr Ing. Kenneth Ashigbey, has called on the government to slow the pace of proposed reforms to mining royalties and expand consultations with industry players to avoid undermining the sustainability of the sector.
Dr Ashigbey made the call on Tuesday while speaking to journalists at a media soiree, where he addressed growing concerns over proposed changes to Ghana’s mining fiscal regime, including royalty structures and taxation.
He said the Chamber had already held an initial meeting with the Minister for Lands and Natural Resources on the proposed review of mining royalties. According to him, while the industry is not opposed to the introduction of a sliding royalty scale, the details and broader fiscal context are crucial.
“For us as an industry, we are not averse to the sliding scale. The challenge is at what point you are putting the sliding scale and the context in which you are putting us,” he said.
Dr Ashigbey pointed to the lithium sector as an example where government policy had benefited from prolonged debate and engagement, noting that differences between policy intent and implementation in that area had been minimal.
He described the situation surrounding gold royalties, however, as more troubling, warning that the proposed changes were both immediate and far-reaching.
He said the government’s current position, which could see royalty rates rise to as high as 11 percent, comes at a time when mining companies are already facing high effective tax rates.
Dr Ashigbey also raised concerns about uncertainties linked to Ghana’s growth and stabilisation framework, as well as existing corporate income tax levels, arguing that the combined fiscal burden could make the country less competitive as a mining destination.
He said Ghana’s effective average tax rate in the mining sector is already high and cautioned that rushing the proposed reforms could threaten the long-term viability of the industry.
“What we believe should happen is that government should wait and have more engagement. We should find a sweet spot that ensures government gets its revenue, while the industry remains sustainable,” he said.
Dr Ashigbey warned that the speed at which the proposed legislation is being advanced, including a bill currently before Parliament, could weaken investor confidence if not handled carefully.
He said that although initial engagements on the bill had been encouraging, further consultations were needed to ensure Ghana remains competitive and attractive to mining investment.
According to him, a balanced outcome would allow mining companies to continue expanding and employing more workers, while enabling the state to raise revenue and support job creation across the wider economy.
He therefore urged the government to temporarily slow the legislative process to allow for broader dialogue involving policymakers, industry players and other stakeholders.
“We need to put a brake on the process, bring all sides around the table, understand government’s policy rationale and find the best way forward so we don’t jeopardise the sustainable development of the industry,” he added.
