The Chief Executive Officer of the Ghana Chamber of Mines, Dr Ing. Kenneth Ashigbey, has urged the government to slow down ongoing reforms to mining royalties and intensify engagement with industry stakeholders to safeguard the sector’s long-term sustainability.
Speaking at a media soiree on Tuesday, Dr Ashigbey addressed concerns over proposed changes to Ghana’s mining fiscal regime, including adjustments to royalty structures and taxation. He revealed that the Chamber has already initiated discussions with the Minister for Lands and Natural Resources regarding the proposed review of royalties.
Dr Ashigbey clarified that the mining industry is not opposed to the introduction of a sliding royalty scale, but emphasized that the timing, thresholds, and broader fiscal context must be carefully considered. “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 explained.
While referencing ongoing debates over lithium royalties, the Chamber CEO noted that the gold sector faces more immediate and far-reaching challenges. He cautioned that the government’s proposal to set royalties as high as 11 percent comes at a time when the industry is already contending with high effective tax rates and uncertainties in Ghana’s growth and stabilisation framework.
Dr Ashigbey warned that pushing through the reforms too quickly could threaten the sector’s competitiveness and long-term viability. “What we believe should happen is that the government should wait and have more engagement. We should find a sweet spot that ensures the government gets its revenue, while the industry remains sustainable,” he said.
He also cautioned that the swift legislative process, including a bill currently before Parliament, could undermine investor confidence if not handled with broader consultation. Dr Ashigbey stressed the need for a balanced outcome that would allow mining companies to grow and hire workers, while also supporting government revenue and job creation across the economy.
He called on the government to temporarily slow the legislative process, urging broader dialogue with policymakers, industry players, and other stakeholders. “We need to put a brake on the process, bring all sides around the table, understand the government’s policy rationale and find the best way forward so we don’t jeopardise the sustainable development of the industry,” he concluded.
Source: Apexnewsgh.com
