Ghana’s Mining Reforms Risk Choking Investment, Warns Industry Body

Ghana’s mining sector could face slower investment and reduced output if proposed reforms to the country’s fiscal and regulatory framework are implemented in their current form, according to the Ghana Chamber of Mines.

The warning follows reports that Africa’s top gold producer plans to scrap long-term investment stability agreements and significantly increase royalty rates as part of sweeping reforms aimed at boosting state revenue from mining.

Under the proposals, stability agreements held by major operators—including Newmont, AngloGold Ashanti and Gold Fields—would not be renewed, marking a major shift in how Ghana manages its mining contracts.

Royalties set to double

A draft bill expected to be tabled in parliament by March proposes a sliding-scale royalty regime, starting at 9% and rising to 12% if gold prices reach $4,500 per ounce or higher. This would be roughly double the current 3%–5% royalty range applied to gross revenue.

The country’s mining regulator, the Minerals Commission, has said the reforms are intended to curb abuses of licensing terms and ensure the state captures a greater share of windfall gains during periods of high commodity prices.

Industry fears stalled projects

While the Chamber of Mines said it supports the principle of a sliding-scale royalty system, it warned that the current structure could push Ghana further up the global effective tax curve—making projects less competitive and discouraging new investment.

“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,” said Kenneth Ashigbey, Chief Executive of the chamber. “The current proposal does not strike that balance.”

The chamber cautioned that higher fiscal burdens could delay projects, reduce production growth and threaten jobs, particularly at a time when miners are already facing rising costs and operational pressures. It did not put forward an alternative royalty proposal.

Heavy existing tax burden

According to the chamber, large-scale miners in Ghana already face a substantial tax load. This includes a 3% growth and sustainability levy, a 3%–5% royalty on gross revenue, 35% corporate income tax, 8% dividend withholding tax, and the state’s 10% free carried interest in mining operations.

Crucially, most of these charges are applied to gross revenue rather than profit, amplifying the impact during periods of lower margins.

The chamber said stability and development agreements could be reviewed and improved, but warned that cancelling them outright would undermine investor confidence by removing long-standing fiscal predictability.

Government response awaited

Ghana’s Lands and Natural Resources Ministry has yet to publicly respond to the concerns raised by the industry. However, the Chamber of Mines said it welcomed ongoing consultations with the minister and reiterated that a competitive, transparent and predictable fiscal regime is essential to sustain long-term investment in the sector.

As Ghana seeks to maximise returns from its mineral wealth, the debate highlights the delicate balance between boosting state revenue and preserving the investment climate that has underpinned the country’s position as Africa’s leading gold producer.