Tag: Ghana Chamber of Mines (GCM)

  • Ghana has not honoured fallen 8 enough in galamsey fight — Ken Ashigbey

    Ghana has not honoured fallen 8 enough in galamsey fight — Ken Ashigbey

    Coalition Against Illegal Mining Convener Expresses Deep Disappointment Over Lackluster Anti-Galamsey Progress One Year After Tragic Helicopter Crash

     

    One year after a devastating military helicopter crash claimed the lives of eight public servants and military personnel on an official mission to launch an anti-illegal mining initiative, anti-galamsey advocate Dr. Kenneth Ashigbey has criticized the nation’s slow progress, declaring that Ghana has failed to adequately honor their supreme sacrifice.

    The fatal crash, which occurred on August 6, 2025, in the Ashanti Region, claimed the lives of Defence Minister Dr. Edward Omane Boamah, Environment Minister Dr. Ibrahim Murtala Muhammed, and six others as they traveled to Obuasi for the official launch of the Responsible Cooperative Mining and Skills Development Programme.

    Speaking during a national broadcast marking the first anniversary of the disaster, Dr. Ashigbey, who serves as the Chief Executive Officer of the Ghana Chamber of Mines and Convener of the Ghana Coalition Against Galamsey, expressed profound disappointment over the government’s enforcement efforts and the continued degradation of water bodies across the country.

    “If you look at our fight against galamsey, we cannot say that we have honoured these eight people as well as we ought to,” Dr. Ashigbey stated. “I remember saying right after the crash that this tragedy was going to result in a drastic shift in the galamsey fight, but unfortunately, very little has changed on the ground.”

     

    Dr. Ashigbey highlighted the stark disparity between official promises of institutional reform made following the accident and the actual legal consequences faced by financiers of illegal mining operations.

    “It is deeply troubling that only one galamsey kingpin has been successfully prosecuted and convicted so far, while others continue to operate with impunity,” Dr. Ashigbey emphasized. “The turbidity levels of our rivers and water bodies remain alarmingly high, proving that we have simply not done enough to honor the memory of the eight heroes.”

     

    The Convener urged the public, civil society organizations, and state regulators to demand genuine accountability and hold politically exposed individuals connected to illegal mining accountable, rather than settling for symbolic tributes.

    “We must transform our national grief into uncompromising action,” Dr. Ashigbey urged. “We should not just weep during anniversaries and let things return to business as usual. The only true way to immortalize these fallen patriots is to end the destruction of our land, enforce our laws without fear or favor, and win this fight once and for all.”

     

    As memorial services concluded across the country, anti-galamsey campaigners renewed calls for the immediate enforcement of strict mining regulations, heavy prosecution of environmental offenders, and the swift restoration of polluted water basins.

     

  • Gold buyback deal hailed by experts as “Far Superior” to dangerous nationalisation calls

    Gold buyback deal hailed by experts as “Far Superior” to dangerous nationalisation calls

    By Adnan Adams Mohammed

     

    Economic and mining experts have lauded the government’s landmark agreement to purchase 30% of gold output locally from all large-scale mining companies, describing it as a masterstroke for resource optimization that avoids the pitfalls of radical resource nationalism.

    Industry insiders say the policy successfully strikes a delicate balance between aggressive national wealth accumulation and maintaining a stable environment for foreign direct investment.

    ​The deal, which takes effect on July 1, 2026, was executed through the Ghana Gold Board (GoldBod) under the joint direction of the Minister of Finance and the Minister for Lands and Natural Resources.

     

    ​A Productive Alternative to Nationalisation

    ​Prominent mining analyst and economic journalist, Adnan Adams Mohammed, has strongly tided the arrangement as a superior, market-friendly model for maximizing national returns from extractive wealth without spooking foreign investors.

    ​”This deal stands out as one of the most viable options through which Ghana can optimize benefits from our natural resources for the nation,” Mohammed noted. “It introduces a structured, state-backed buyback that respects commercial realities while securing a tangible share of production for our national reserves.”

     

    ​Mohammed contrasted this arrangement with recent aggressive calls by some public policy think tanks for state ownership, warning that forced takeovers could spell disaster for Ghana’s ongoing economic recovery.

    ​”This is far more productive than the ill-advised localization or outright nationalisation of the mines, which could severely impact our promising economy,” Mohammed added, referencing his recent publications, including ‘Ghana’s Resource Nationalism Debate: Why Clarity From Government Matters Now’. “Forced state takeovers disrupt investor confidence, choke capital inflows, and threaten operational stability. This 30% local purchase framework offers asset accumulation without the catastrophic baggage of nationalisation.”

     

    ​Shifting to Local Currency and Retaining Value

    ​Unlike the previous 2022 framework between the Bank of Ghana and the Ghana Chamber of Mines, the new Memorandum of Understanding (MoU) introduces crucial operational updates. Large-scale miners will sell the 30% output locally in doré (raw) form at a 0.55% discount, with all transactions settled in Ghana Cedis using the Bank of Ghana Reference Rate.

    ​”This is a monumental step toward fiscal sovereignty,” a senior government official stated following the announcement. “By executing these transactions entirely in local currency and keeping the raw bullion within our borders, we are putting an end to capital flight and directly backing the strength of the Cedi with a tangible asset.”

     

    ​The Road to LBMA Accreditation

    ​A core strategic objective of the pact is elevating Ghana’s domestic refining standard to global heights, targeting London Bullion Market Association (LBMA) accreditation for at least one local refinery by 2030.

    ​Under the approved protocol, GoldBod will ensure all purchased doré is refined locally for maximum value retention, shipped to an LBMA refinery for melting and stamping, and returned to the central bank.

    ​The Ghana Chamber of Mines expressed shared optimism for this phased approach to industrialization:

    ​”The chamber and its members view this as a win-win partnership. While it guarantees a steady, structured local off-taker for 30% of our production, it aggressively drives the ecosystem toward achieving an LBMA-accredited refinery right here in Ghana. Local value addition is the future of African mining.”

     

    ​Driving GANRAP and Zero Raw Exports

    ​The initiative serves as a core engine for the Ghana Accelerated National Reserve Accumulation Program (GANRAP), which targets building foreign reserves to 15 months of import cover by 2028. It also aligns with President Mahama’s broader industrial policy of achieving zero raw mineral exports by 2030.

    ​The comprehensive details and regulatory structures of the signed MoU backed by the Ministries of Finance and Lands, GoldBod, the Bank of Ghana, and the Chamber of Mines will be officially published on Monday, July 29, 2026.

  • Policy Whiplash: Mine expert warns against localising large mines as gov’t contradicts self over Tarkwa lease

    Policy Whiplash: Mine expert warns against localising large mines as gov’t contradicts self over Tarkwa lease

    By Adnan Adams Mohammed

    The government’s shifting stance on resource nationalism has sparked intense debate within the mining sector, following conflicting statements regarding the future of South Africa’s Gold Fields Tarkwa mine after its current lease expires in April 2027.

    Mixed signaling from state officials has left investors and industry analysts questioning the administration’s long-term economic strategy, alternating between a populist push for local control and reassuring statements aimed at maintaining foreign investor confidence.

     

    The Local Transfer Proposal

    The controversy erupted following reports that the government is actively considering a complete transfer of the Tarkwa mine, Ghana’s second-largest gold producing asset, to indigenous firms once the current 30-year lease concludes.

    The proposal mirrors a recent regulatory maneuver executed at the Damang gold mine, where the government declined a lease extension to Gold Fields and subsequently handed operations over to the local firm Engineers & Planners (E&P). Civil society organizations and policy institutes have aggressively lobbied for a repetition of this model at Tarkwa.

    “Ghana must move beyond the automatic renewal of foreign-controlled mining concessions and begin building a mining sector that places Ghanaian ownership and prosperity at its center,” argued a representative advocating for a petition against the lease renewal. “Tarkwa was once proudly known as the State Gold Mine. This wealth must be retained to support our own development and create high-value engineering jobs for our youth.”

     

    Warning Against the Localisation of Large Mines

    However, the aggressive push for total local takeover has met sharp resistance from industry experts who caution that economic populism could destabilize Ghana’s primary source of foreign exchange.

    Adnan Adams Mohammed, an award-winning financial and economic journalist and prominent mining advocate, has come out strongly against the complete localisation of the country’s Tier-1 large-scale mines. Speaking on the implications of the Tarkwa standoff, Mohammed warned that local entities currently lack the deep capital reserves and technical mechanisms required to sustain ultra-large-scale operations.

    “We must separate economic patriotism from economic reality,” Mohammed stated. “Large-scale mining assets like Tarkwa require hundreds of millions of dollars in continuous capital expenditure, deep-level technical expertise, and global supply chain integrations. Forcing a sudden localisation policy on our premier mines risks devastating production levels, slashing government revenue, and signaling to the international market that capital is no longer safe in Ghana. Local content should be built through downstream value chains, not hostile takeovers of capital-intensive operations.”

     

    A Swift Counter-Response to Markets

    However, the prospect of losing a crown jewel asset that produced over 420,000 ounces of gold in 2025 sent shockwaves through international markets, prompting a swift rhetorical rollback from senior state officials desperate to contain the damage to Ghana’s investment profile.

    Speaking to the press, Lands and Natural Resources Minister Emmanuel Armah Kofi Buah categorically rejected claims that the state was initiating a program of systemic expropriation.

    “The government has not adopted a blanket nationalization policy to take advantage of the sector,” Minister Buah stated. “What we are seeking are partners that will leave behind deep expertise, empower Ghanaians in the downstream industry, and guarantee local value creation. Our relationship with international firms remains strong and collaborative.”

    Adding a layer of fiscal complexity, Finance Minister Dr. Ato Forson addressed the situation during an interview with Bloomberg News. While confirming that the government is studying Gold Fields’ formal request for renewal, he clarified that no definitive verdicts have been passed.

    “We have not come to an agreement with anyone, because the lease is still active as we speak,” Dr. Forson emphasized. However, he warned international mining conglomerates against treating extensions as short-term regulatory commodities, pointing to recent transactions where firms secured lease renewals only to sell the assets to foreign buyers a month later. “That fails to build mutual trust with the government on these developments,” the Finance Minister noted.

     

    The Regulatory Middle Ground

    Faced with accusations of internal contradiction, regulatory authorities are attempting to frame the shifting policy as a transition to stricter oversight rather than outright hostility to foreign capital.

    Isaac Andrews Tandoh, the Chief Executive Officer of the Minerals Commission, firmly denied that the government was intentionally delaying negotiations or moving to nationalize assets without cause.

    “It won’t be business as usual where we just automatically renew the lease,” Tandoh told reporters. He clarified that Gold Fields has been actively engaging with a technical committee to present a comprehensive, multi-decade development plan. “The company must present its technical development plans to a committee at the Minerals Commission, followed by a ministerial-level presentation, after which a decision on renewal will be made based on rigorous standards of local commitment.”

     

    Community and Industry Fallout

    While government entities trade mixed messages, local stakeholders are voicing deep anxieties over the lack of policy clarity. Traditional authorities in the Western Region have expressed open concern that an abrupt transition to local operators could disrupt vital social investments.

    “Gold Fields has played a vital role in supporting development projects, infrastructure, healthcare, and education in our municipality,” stated a traditional leader from the Huniso community at a recent press conference. “Extending the lease under stable conditions is necessary to sustain these benefits and protect the livelihoods of our youth.”

    Meanwhile, the Ghana Chamber of Mines has cautioned that the ongoing ambiguity and the precedent set by recent lease revocations risk creating a market perception that “security of tenure in Ghana is not guaranteed,” a development that could severely chill capital entry into the country’s extractive sectors.

    As the 2027 deadline approaches, the state finds itself walking a thin wire trying to appease a domestic electorate hungry for resource sovereignty while assuring global markets that Ghana remains an orderly, safe haven for foreign direct investment.

     

  • Small-scale gold output outpaces large mines, sparking calls for artisanal sector overhaul

    Small-scale gold output outpaces large mines, sparking calls for artisanal sector overhaul

    By Adnan Adams Mohammed

    Senior Energy & Extractive Correspondent

     

    In a historic shift for West Africa’s mining landscape, Ghana’s artisanal and small-scale mining (ASM) sector has officially outperformed large-scale industrial operations for the first time.

    According to the latest annual industry data, Ghana’s total gold production reached a record 6 million ounces. Of this total, ASM output exploded by 63.8% to hit 3.11 million ounces, capturing over 51% of the national aggregate. Meanwhile, large-scale multinational mines accounted for 2.83 million ounces.

    This unprecedented production flip has altered the ongoing debate surrounding national resource revenue optimization, prompting calls for the state to abandon aggressive policies targeting large-scale operators and instead focus on formalizing the booming artisanal sector.

    Moving away from nationalization and corporate mandates

    The production milestones arrive amidst growing friction between commercial operators and state regulators. The Bank of Ghana recently adjusted its domestic bullion reserve-building program, mandating that large-scale miners sell up to 30% of their output to the central bank a policy shift aimed at shoring up national reserves to 19.2 metric tons to stabilize the cedi. Furthermore, government discussions regarding a sliding-scale royalty structure of 5% to 12% have raised fears of resource nationalization among foreign investors.

    However, industry experts argue that trying to squeeze more revenue out of large-scale corporate mines is the wrong strategy when the real growth engine is domestic.

    “The data proves where the true revenue optimization potential lies,” stated Dr. Kenneth Ashigbey, CEO of the Ghana Chamber of Mines, at a recent extractive sector roundtable. “With the Chamber projecting over three trillion ounces of undiscovered gold still in Ghana’s subsurface, our national focus must be on formalizing, mapping, and maximizing the artisanal sector rather than introducing policies that border on the nationalization of large-scale assets.”

     

    Dr. Ashigbey warned that aggressive mandates on corporate miners create an unstable investment climate, which could choke off the heavy capital required for deep-crust exploration.

    GHANA GOLD OUTPUT PROFILE (MARKET SHARE SPLIT)

    ===============================

    Total Output: 6.00 Million Ounces

    —————————————————

    Artisanal & Small-Scale: 3.11 Million Ounces (51.8%)

     

    Large-Scale Industrial: 2.83 Million Ounces (47.2%)

     

    Other/Residual: 0.06 Million Ounces (1.0%)

     

    The ASM sector as an economic pillar

    Economists and policy analysts note that the small-scale sector not only produces more gold but also keeps a higher percentage of its wealth within the local economy, compared to multinationals that repatriate profits.

    Senior mining investment analyst Faustina Mensah emphasized that optimizing the artisanal sector is the fastest path to sustainable national development, provided the state replaces destructive galamsey (illegal mining) practices with structured support.

    “A resource in the ground is worth nothing until it is proven and extracted responsibly,” Mensah observed. “Now that small-scale miners are producing over half of our gold, the government must shift its regulatory lens. Instead of fighting large-scale miners over contract mining policy directives or volume discounts, the state should actively de-risk small-scale concessions with geological mapping, provide cleaner processing technology, and integrate them into the formal tax net.”

     

    A new path for revenue optimization

    The consensus among industry stakeholders is clear: the future of Ghana’s mineral wealth depends on upgrading local mining from an informal, survivalist activity into a highly efficient, regulated domestic industry.

    By prioritizing the formalization of the artisanal sector over the tighter regulation of foreign corporations, the government could secure cleaner environmental practices, capture direct tax revenues, and systematically exploit the nation’s multi-trillion-ounce gold potential without alienating international capital markets.

     

  • Investor confidence boosted as gov’t rules out mine nationalisation

    Investor confidence boosted as gov’t rules out mine nationalisation

    By Adnan Adams Mohammed

    The government has forcefully rejected claims of an impending policy shift toward the nationalisation of foreign-owned mining assets, moving swiftly to reassure the investor community that Ghana remains a stable, predictable, and market-driven destination for capital.

    The high-stakes policy clarification comes amid a firestorm of public debate surrounding the upcoming 2027 expiration and renewal of Gold Fields’ flagship Tarkwa mine lease, exposing a deep national divide between calls for localized resource sovereignty and the preservation of foreign direct investment (FDI).

    Speaking at the 19th edition of the West African Mining and Power Expo (WAMPEX) in Accra, the Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, declared that broad-scale asset expropriation is not on the cabinet’s agenda.

    “Nationalisation of mines is not government policy,” the Minister stated, clarifying that recent state interventions should not be misconstrued as aggressive resource nationalism. “The government has not adopted a blanket nationalisation policy to take advantage of the sector, but we are actively seeking mutually beneficial partnerships that will leave behind deep technical expertise and genuinely empower Ghanaians in the extractive industry.”

    Stricter Scrutiny, No Automatic Renewals

    Despite the state’s investor-friendly rhetoric, the regulator has made it clear that the era of rubber-stamping multi-decade mining concessions is over. The Minerals Commission has officially ruled out an automatic extension for Gold Fields’ Tarkwa mine a cornerstone asset in the Western Region that produced approximately 427,000 ounces of gold in 2025, valued at over $1 billion.

    The regulatory tension is heightened by the precedent set at Gold Fields’ Damang mine, where the government rejected a lease renewal application, assumed temporary operational control, and subsequently transferred operations to an indigenous Ghanaian firm, Engineers & Planners (E&P), following a competitive tender.

    Chief Executive Officer of the Minerals Commission, Isaac Andrews Tandoh, confirmed that while the state is actively engaged in discussions with Gold Fields, the South African miner will face rigorous new benchmarks before securing a renewal.

    “It won’t be business as usual where we just automatically renew the lease,” Tandoh asserted. “The company must present its exhaustive, long-term development plans to our technical committee, followed by a ministerial-level justification. Mining companies must now show significantly stronger, verifiable commitments to local value creation, structural technology transfer, and sustainable community development.”

    Chamber of Mines Welcomes Assurances

    The government’s explicit rejection of nationalisation has injected a much-needed wave of relief through the formal business community. The Ghana Chamber of Mines warmly welcomed the Minister’s remarks, noting that clarity on the security of tenure is paramount to preventing capital flight.

    Addressing delegates at WAMPEX, the Chief Executive Officer of the Chamber of Mines, Dr. Ken Ashigbey, emphasized that handling mining leases on a transparent, lawful, case-by-case basis is the only way to safeguard Ghana’s international reputation.

    “These assurances reinforce Ghana’s commitment to maintaining a stable, predictable, and investment-friendly environment,” Dr. Ashigbey stated. “Regarding recent discussions of mining leases, the Minister’s clarification helps reinforce investor confidence at a time when policy certainty is critical. The future of mining in West Africa will not be defined solely by extraction, but by who adds value, processes minerals, and builds integrated ecosystems. We must achieve this through collaboration, not disruption.”

    The Backlash: Citizens Feel Shortchanged

    The escalating debate over the Tarkwa lease is fueled by a palpable groundswell of public dissatisfaction. For many mining communities and civil society groups, the visible environmental degradation and local poverty stand in stark contrast to the billions of dollars worth of gold shipped abroad.

    Natural resource governance expert and Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr. Steve Manteaw, observed that the intense public scrutiny surrounding Gold Fields is a symptom of a much larger socioeconomic grievance.

    “Before the controversy surrounding the renewal of Gold Fields’ Tarkwa mining lease, few mining applications had generated such intense public interest,” Dr. Manteaw said in an interview on Joy News’ PM Express. “There is a widespread, growing perception that resource-rich Ghana is being shortchanged despite decades of mineral extraction. People feel that as resource owners, we are not getting enough, and they want to flip it over to Ghanaians so that greater value is retained in-country.”

    Dr. Manteaw noted that while the current administration’s rhetorical agenda aims to “indigenise the industry and put Ghanaians in the commanding heights of the economy,” the state must tread carefully.

    A Warning Against Sentiment and Populism

    While backing the principle of larger state and indigenous stakes in natural resources, Dr. Manteaw issued a stern warning to policymakers against capitulating to emotional or populist demands that ignore economic realities, backing earlier remarks made by Adnan Adams Mohammed, a veteran journalist and mining Health and Safety Professional.

    “I welcome the call for Ghana to acquire a more substantial stake in our mineral sector, but we need to talk about strategy and not base our actions on pure sentiment,” Manteaw warned. “There is a complex way in which this industry operates. If you don’t get the strategy right, you can put a world-class mine into Ghanaian hands and actually lose out entirely, because local actors may lack the massive capital balance sheets required to sustain production levels.”

    Instead of abrupt ownership seizures, Manteaw proposed structural fiscal reforms, pointing out that Ghana’s historic direct control of mines in the 1970s and 1980s resulted in severe operational inefficiencies and catastrophic financial losses until FDI rescued the sector.

    “What we fundamentally need to fix is the local management and deployment of mineral revenues by district assemblies and central government, which currently favors recurrent expenditure over capital development,” Manteaw argued. He further urged the state to restructure its standard 10% free-carried interest into production-linked equity, ensuring the state receives physical gold rather than waiting years for corporate dividends that may never be declared.

    As the April 2027 expiration date for the Tarkwa concession approaches, the executive branch, parliament, and civil society remain locked in a delicate balancing act: satisfying a domestic population hungry for economic sovereignty without triggering an investor panic that could derail the broader economy.

     

  • ‘Contract Mining’ costs Ghana taxes and workers’ rights – study reveals

    ‘Contract Mining’ costs Ghana taxes and workers’ rights – study reveals

    By News Desk

    Ghana’s aggressive push toward resource nationalism is facing a severe reality check. What was designed to be a landmark economic triumph, forcing global mining titans to transfer open-pit and underground operations to indigenous firms, is rapidly devolving into an industrial crisis.

    While the state celebrates the birth of a new class of politically connected “local mining champions,” a darker narrative is unfolding in the goldfields of Tarkwa, Obuasi, and Ahafo.

    Under the guise of Legislative Instrument (L.I.) 2431, international operators are being forced to hand over core operations to Ghanaian contractors. However, a study conducted by Ghana Mineworkers Union and Adnan Adams Mohammed (a veteran Finance and Economic Journalist) suggests that this transition is aggressively eroding labor safety standards, aggressively depressing Pay-As-You-Earn (PAYE) tax revenues, and systematically impoverishing the local workforce.

    The economics of a race to the bottom

    The transition from owner-led mining to contract mining has triggered intense cost competition among local contractors eager to win lucrative concessions. To secure contracts with multinationals like Newmont, AngloGold Ashanti, and Zijin Mining, local entities are aggressively underbidding one another.

    Data compiled by the Minerals Commission indicates that operational contract rates have plummeted by over 17%.

    Infographic: The Price of Underbidding

    Metric Owner Mining Model Contract Mining Model Percentage Change

    Average Mining Production Cost (per Ton) $3.00 < $2.50 -16.7%

    Average Worker Basic Compensation 100% (Baseline) ~50% of Baseline -50.0%

    PAYE Tax Contribution per Capita High Critically Low Highly Suppressed

    Statutory Compliance (Pensions/SSNIT) Guarded / Publicly Audited Highly Inconsistent High Default Risk

    This margin compression does not come out of the pockets of the business executives; it is directly extracted from the livelihoods of ordinary Ghanaian miners.

    Enriched elites vs. impoverished labour

    The structural shift is widening a massive wealth gap between a small group of politically exposed businessmen and the thousands of labourers working the pits. Local contractors routinely bypass or completely ignore transitional labour agreements designed to protect workers during the hand-off from multinational parent companies.

    When operations shift from an owner-operator model to a contractor model, workers are frequently forced into new contracts featuring slashed salaries, zero job security, and severely degraded safety protocols.

    “The growing reliance on contract mining is reversing hard-won labour protections. Local contractors typically pay wages roughly 50% lower than international operators for the exact same roles, offer vastly inferior job security, and show glaring gaps in social security contributions” Abdul Moomin Gbana, General Secretary of the Ghana Mineworkers’ Union has said.

    While multinational firms are bound by international labor frameworks and strict stock exchange listings, local private entities operate with far less public oversight. The results are devastating for local families.

    Shortchanging the national tax purse

    The state’s financial losses extend far beyond broken promises of value retention. The shift from high-earning, formalized direct employment to low-wage contract labor has crippled the Ghana Revenue Authority’s (GRA) collection of Pay-As-You-Earn (PAYE) taxes.

    Because basic wages are slashed by up to half under local contractor structures, individual income tax contributions have dropped correspondingly. This creates an ironic economic failure: the government’s local content policy is systematically draining the national treasury to line the pockets of a select few private business owners.

    Furthermore, several local contractors are reportedly defaulting on statutory remittances, including Tier-1 SSNIT pensions and provident funds. This effectively leaves the long-term financial security of Ghanaian workers entirely unprotected.

    The Minerals Commission has publicly acknowledged these systemic failures.

    “We have observed instances where mining service rates have fallen significantly, placing severe pressure on contractors and, by extension, their workers. The Commission is moving to tighten oversight of contractors to prevent the underpricing practices that drive down wages and operational safety standards” Isaac Tandoh, Chief Executive of the Minerals Commission said at the 2nd Africa Mining Health and Safety Series last month in Takoradi.

    The legal and safety blind spot

    The rush to hit the state’s strict compliance deadlines has forced many operators to overlook safety and operational frameworks. Industry executives privately warn that forcing capital-intensive, high-risk operations like blasting and heavy haulage onto local firms without a gradual, market-driven transition poses severe operational and physical dangers.

    The Ghana Chamber of Mines has urged the government to slow down and rethink its rigid enforcement timeline to preserve industry stability.

    “While the policy direction is understood, its implementation must be gradual to avoid disruptions in production and investment confidence. We must ensure a balanced, win-win outcome that preserves operational efficiency while advancing national policy objectives” Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines shared his worry.

    A call for regulatory realignment

    If “Local Content” is to mean genuine economic empowerment rather than the exploitation of citizens by domestic elites, a major policy realignment is urgently needed.

    Ghana’s regulatory bodies cannot afford to monitor ownership percentages while completely ignoring labor exploitation and tax evasion. The Minerals Commission must immediately establish strict pricing benchmarks that prevent underbidding, mandate full transparency for transitional labor agreements, and black-list contractors who default on worker pensions and state taxes.

    Until these safeguards are legally enforced, the gold fields of Ghana will continue to enrich a well-connected few, while leaving the state treasury empty and the indigenous workforce broken, argues the Ghana Mineworkers Union.

     

     

     

     

     

     

     

     

     

     

  • “Hands Off GoldFields”: veteran journalist slams IEA ‘populism’ over Tarkwa lease renewal

    “Hands Off GoldFields”: veteran journalist slams IEA ‘populism’ over Tarkwa lease renewal

    By News Desk

    The heated debate over the sovereignty of Ghana’s mineral wealth has taken a sharp turn as Adnan Adams Mohammed, a prominent economic analyst and mining advocate, has launched a scathing defense of Gold Fields Ghana’s lease renewal at Tarkwa.

    Following calls from the Institute of Economic Affairs (IEA) and former Chief Justice Sophia Akuffo to halt the renewal in favor of total state ownership, Mr Adnan Adams Mohammed has warned that such “radical nationalization” rhetoric risks collapsing the nation’s primary economic pillar.

    The “betrayal” of private capital

    The controversy erupted after the IEA formally opposed the renewal of Gold Fields’ Tarkwa mining lease, arguing that the current 90-10 split between the company and the government is a colonial-era vestige that disadvantages the state. However, Mr Adnan Adams has been quick to frame the IEA’s stance as economically reckless.

    “We must move past this populist sentiment that ignores the reality of global capital,” Mr Adnan Adams stated in a series of biting critiques. He pointed to the historical failure of state-run enterprises, referencing the era of the State Gold Mining Corporation (SGMC) which nearly collapsed the sector before privatization in the 1980s.

    “The calls by the IEA and Sophia Akuffo are not just ill-timed; they are dangerous. They are asking the state to take over complex, capital-intensive operations when we are currently struggling to manage basic public utilities. To suggest GoldFields should be pushed out is a betrayal of the investment stability Ghana has spent decades building.”

    Chamber of Mines joins the defence

    The Ghana Chamber of Mines has echoed Mohammed’s sentiments, formally rejecting the IEA’s proposal to nationalize the Tarkwa mine. The Chamber argued that the current model, which combines royalties, corporate taxes, and a 10% carried interest, ensures the state benefits without bearing the massive financial risks of mining.

    “Mining is a high-risk, high-cost venture,” a representative for the Chamber of Mines noted. “The Tarkwa operations are a blueprint for responsible mining in the sub-region. To interrupt a renewal based on ideological theories rather than technical or economic defaults is to tell the world that Ghana is no longer open for business.”

    The Chamber emphasized that Gold Fields has invested billions of dollars into the Tarkwa site, providing thousands of high-paying jobs and supporting local infrastructure benefits that critics often overlook in favor of raw percentage debates.

    The IEA vs. reality

    The IEA’s stance, backed by Sophia Akuffo, suggests that Ghana should follow the examples of countries like Botswana or those in the Middle East, where the state maintains a majority stake in natural resources.

    Adnan Adams Mohammed, however, was quick to dismantle this comparison. “You cannot compare a 100-year-old gold industry with the specific geological and political landscape of Botswana’s diamonds. These are different commodities with different cost structures. When people like Sophia Akuffo speak on this, it feels like the betrayal of Jean Mensah’s era—where decisions are clouded by optics rather than the hard truth of the Cedi.”

    Strategic stability

    The defense of the lease renewal comes at a time when the mining sector is already under pressure from high taxes. For Mohammed, the Gold Fields lease represents more than just one mine; it is a signal to the international market.

    “If we allow the IEA to dictate mining policy through the lens of nationalization, we will see an exodus of investors that will make the departure of Endeavour Mining look like a minor event,” Adnan Adams warned. “Gold Fields has demonstrated loyalty to the Ghanaian economy even during downturns. They deserve a renewal based on their performance, not a rejection based on academic theories.”

    As the government weighs the renewal of the Tarkwa lease, the battle lines are clear: on one side, an academic push for greater state control; on the other, a pragmatic demand for stability led by voices like Adnan Adams Mohammed, who believe that a “Job-First” and “Investment-First” approach is the only way to keep Ghana’s gold sector alive.

     

     

  • Investor exodus and “danger zone” taxes threaten regional mining dominance

    Investor exodus and “danger zone” taxes threaten regional mining dominance

    By Adnan Adams Mohammed

    Ghana’s long-standing reign as Africa’s top gold producer is under severe threat as a “hostile” fiscal regime pushes major investors toward more competitive neighbors.

    In a stark warning, industry leaders suggest that the country has entered a “danger zone” where taxation levels are actively driving capital out of the domestic economy.

    Speaking on Joy News’ PM Express Business Edition, the CEO of the Ghana Chamber of Mines, Ing. Dr. Ken Ashigbey, revealed that Ghana is hitting the upper limits of the International Monetary Fund’s (IMF) recommended fiscal range.

    “The IMF has a model where, in terms of the rent… you are supposed to be doing between 40% and the upper limit at 60%,” Dr. Ashigbey explained. “Currently, what we are doing is that we are hitting that upper limit. If you are an investor and the government is going to take above 60, and you have Ivory Coast and other countries that are going to take less, definitely you are going to find out that some of your investments will move out.”

    The great investor migration

    The warning is not merely theoretical. Dr. Ashigbey cited the high-profile exit of mining giant Endeavour Mining, which has shifted its strategic focus from Ghana to Côte d’Ivoire. He also disclosed that a mining firm recently liquidated a property in South Sudan with the intent of reinvesting in Ghana, only to redirect those funds to Côte d’Ivoire at the eleventh hour.

    “The money moved into Côte d’Ivoire due to the fiscal regime that is not friendly, especially the royalty,” Ashigbey noted. He specifically criticized the recent increase in royalty rates which surged from a flat 5% to a range of 5% to 12% as a primary driver of rising production costs.

    The rise of regional rivals

    While Ghana has historically relied on its stable democracy and the incentives provided under Act 703 to attract investment, neighboring nations are rapidly closing the gap. Côte d’Ivoire, in particular, has laid out an ambitious roadmap to become the continent’s leading producer within the next decade.

    “Their objective is that in the next 10 years they want to be the leading producer of gold in Africa,” Ashigbey warned. “It means they want to take over from us in Ghana… The geology is not restricted to Ghana.”

    Ethics amidst crisis: The Adamus controversy

    The fiscal pressure comes at a time when the industry is also grappling with regulatory and ethical challenges. The Chamber of Mines recently raised concerns about the revocation of the mining lease of Adamus Resources Limited, following allegations of illegal mining breaches and environmental damage.

    The Chamber now supports the government’s decision to establish a committee to review the revocation, following a petition submitted by Adamus Resources Limited on the matter.

    Despite the firm’s pushback, claiming it has been actively fighting illegal mining on its concessions, the Chamber has maintained a firm stance on compliance.

    “The long-term credibility, stability, and competitiveness of Ghana’s mining industry depend on adherence to these standards by all operators,” Dr. Ashigbey stated regarding the controversy. He emphasized that while the Chamber supports “responsible mining,” it remains mindful of the “potential impact of this development on employees and host communities.”

    A call for urgent reform

    As Parliament considers adjustments to various levies, including the Growth and Sustainability Levy, the message from the mining sector is clear: the current path is unsustainable.

    Industry experts are calling for an immediate reconsideration of the royalty regime to prevent further “sovereign risk” perceptions and job losses.

    “What you have done is that you’ve added an additional cost to the production of these mining firms,” Ashigbey concluded. “If we do not look at our fiscal policies urgently, we will find that we have the gold in the ground, but no one to help us bring it out.”

     

     

     

  • Industry warns new ‘Royalty Regime’ could trigger ‘Capital Flight’ and job losses

    Industry warns new ‘Royalty Regime’ could trigger ‘Capital Flight’ and job losses

    By Adnan Adams Mohammed

    The Ghana Chamber of Mines has issued a stark warning to the government, asserting that a proposed overhaul of the mining fiscal regime could dismantle Ghana’s status as a top investment destination.

    The industry body argues that the new “sliding-scale royalty regime” risks branding Ghana as a “fiscal outlier,” potentially driving billions in capital toward more stable neighbors like Côte d’Ivoire and Burkina Faso.

    This pushback follows a major policy announcement by the Acting CEO of the Minerals Commission, Isaac Tandoh, who revealed plans to scrap long-term stability agreements and significantly hike royalties. The reforms aim to ensure the state captures a fairer share of the recent “gold super-cycle,” with spot gold prices trading near record highs of US$5,100 per ounce.

    The “Fiscal Outlier” threat

    The crux of the tension lies in the proposed jump in royalty rates. Currently, mining firms pay a flat 5% royalty. Under the new sliding-scale framework, this could soar to between 9% and 12% (and potentially as high as 17% when combined with other levies) depending on global gold prices.

    “International benchmarking indicates that Ghana already occupies a high-tax position,” the Chamber stated in a position paper released last week. When the new royalties are added to the 35% corporate income tax and the State’s 10% free-carried interest, the cumulative burden becomes unsustainable for many operations.

    Modeling the damage: Jobs and revenue

    The Chamber’s investment modeling suggests that the policy could have a “non-linear” and devastating impact on the economy:

    ● Job Losses: An estimated 1,344 jobs are at risk, with 88% of those coming from local host communities.

    ● Stalled Projects: Major operations, such as AngloGold Ashanti’s Obuasi Mine, could see an 8% decline in Net Present Value (NPV), potentially pushing projects below the “hurdle rate” required for reinvestment.

    ● Supply Chain Contraction: Local procurement, a lifeline for many Ghanaian businesses, could contract by over US$1.7 billion over time.

    “The question is whether the government wants revenue on a sustainable basis or just in the next few years before investments move elsewhere,” warned Dr. Ken Ashigbey, CEO of the Chamber of Mines.

    A “double-edged knife”

    While the government argues that these reforms are necessary to “indigenize” value and correct past “abuses” of stability agreements, industry experts call it a gamble. By scrapping the clauses that shield investors from sudden policy shifts, Ghana may increase its “sovereign risk perception” at a time when competition for mining capital is global.

    The Minerals Commission maintains that the reforms are about balance. “We had to do something to bridge this gap,” said Isaac Tandoh, noting that some companies have historically used revenues from Ghana to acquire assets elsewhere while refusing basic local obligations.

    As the draft bill prepares to head to Parliament by March, the mining industry is calling for a “sweet spot” a regime that allows the state to benefit from high prices without choking the very companies providing the revenue.

     

     

  • Chamber of Mines proposes sliding royalty of 4%-8%, removal of GSL amid high gold prices

    Chamber of Mines proposes sliding royalty of 4%-8%, removal of GSL amid high gold prices

    The Ghana Chamber of Mines has drafted and submitted a proposal to government to introduce a sliding royalty regime between 4% and 8%, remove the Growth and Sustainability Levy, and add a 1% net-profit contribution to a community development fund.

    The proposal aims to allow the state to benefit from the current surge in gold prices while avoiding long-term fiscal decisions based on what the Chamber describes as a short-term market cycle.

    Speaking on Joy News’ PM Express Business Edition on Thursday, the Chamber’s CEO, Ken Ashigbey, said the industry supports fair taxation but cautioned against permanent policy choices driven by temporary price spikes.

    “You see, eating on a constant and continual basis is better than eating one large meal once,” he said.

    He warned against what he described as an “Esau mentality” in public policy.

    “This phenomenon is a short-term phenomenon. You don’t take decisions that are long-term in nature just based on the phenomenon,” he said.

    Mr Ashigbey explained that the proposal followed government’s draft legislative instrument on mining royalties. “When the LI came, we made an offer,” he said.

    The Chamber’s counter-proposal seeks to replace the current structure with a flexible royalty system that adjusts to market conditions.

    “Instead of now you sliding from where you are, slide down to 4% and slide up all the way to 8%,” he said.

    Under the proposal, the Growth and Sustainability Levy would be removed entirely.

    “We take GSL off, then slide between 4% and 8%,” he said.

    He explained that the model allows royalties to rise during price booms and fall during price declines.

    “When prices come down to a particular US$1,900, you then would do a 4%,” he said. “It’s not that you are only sliding up, but you’re sliding both up and down.”

    According to him, the approach ensures fairness and sustainability for both the state and mining companies.

    “It becomes more equitable and ensures that you are able to keep the wheels running,” he said.

    The Chamber has also proposed an additional 1% contribution from net profits to support development in mining communities.

    “One of the things that we believe should happen is that the people in these mining communities should be able to point to the fact that when the prices of gold hit the roof, we were able to do this project,” he said.

    He said the fund would allow communities to see visible benefits during periods of high commodity prices.

    “As part of our offer to government was to say that we would add a 1% that is taken off net profit and put that into a fund that we use for community development,” he said.

    Ken Ashigbey stressed that the Chamber is not opposing taxation. “We are all open to fair taxation. That is something that we are not arguing about,” he said.

    He argued that a flexible royalty system could generate stronger government revenues over time by supporting production growth.

    “When you compute royalties, it is the price times your volumes times the royalty,” he said. “If you are able to keep the price up and still keep the royalties up, then what you would get on a sustainable basis would be better.”

    He added that strong margins during high-price periods allow mining firms to expand output, which ultimately increases royalty inflows.

    The Chamber also called for broader inclusion of the small-scale mining sector in national revenue mobilisation.

    “Small-scale sector did more than half of what the large-scale sector did,” he said.

    He noted that once engagements with regulators are completed and rates are properly structured, small-scale miners could also contribute.

    “They would also be able to put a bit into the kitty,” he said. He argued that bringing both large- and small-scale operators into the framework would help government meet its revenue objectives more sustainably.