News Guide Africa

Tag: Ghana Chamber of Mines (GCM)

  • Beyond the Gold Rush: Why Ghana Needs a Sustainable Mining Future

    Beyond the Gold Rush: Why Ghana Needs a Sustainable Mining Future

    By Adnan Adams Mohammed

    As gold prices have smashed records, surging past US$5,500 per ounce in January 2026, Ghana finds itself at a fiscal crossroads. The temptation to “gorge” on current windfalls is high, but the Chamber is warning against an “Esau mentality” trading a long-term birthright for a bowl of short-term pottage.

    Figuratively, in the halls of Ghana’s mining power, a familiar metaphor is making the rounds: “Eating on a constant and continual basis is better than eating one large meal at once.” These words, spoken by Ken Ashigbey, CEO of the Ghana Chamber of Mines, capture the central tension of a nation currently sitting on a gold mine both literally and figuratively.

    The Small-Scale Elephant in the Room

    While large-scale mines have traditionally carried the heavy lifting of national revenue, a massive shift has occurred beneath the surface. Small-scale mining now accounts for more than half of the output of large-scale operations. Yet, despite this dominance, the sector remains “lightly regulated” in its tax contribution.

    Ashigbey’s push is simple: Tax everyone fairly. By expanding the tax net to include small-scale miners under the revised royalty regime, the government could significantly boost its “kitty” without suffocating the large-scale producers who already face one of the highest effective tax rates in the world.

    “Bring them into the pool,” Ashigbey urged. “Once the percentages are right, they would also be able to put a bit into the kitty.”

    The “Sliding Scale” Debate: Finding the Sweet Spot

    The government has recently laid before Parliament a new Minerals (Royalties) Pricing Schedule Regulation. It introduces a sliding-scale royalty that could climb as high as 12% when gold prices exceed US$4,500.

    The Chamber, however, has proposed a more balanced “counter offer.” Their vision for a sustainable “sweet spot” include:

    ● A 4% to 8% Scale: Replacing the government’s proposed aggressive peaks with a more moderate slide.

    ● Scrapping the Growth and Sustainability Levy (GSL): Reducing the cumulative burden on companies to encourage reinvestment.

    ● The 1% Net Profit Clause: A dedicated fund where 1% of net profit goes directly into community development.

    Saving for the “Bust”

    Perhaps the most forward-looking proposal from the Chamber is the call for a Minerals Revenue Management Act. Currently, Ghana’s economic stability is heavily predicated on global commodity prices a factor the nation does not control.

    “Currently, the macros are very good… but all of that is predicated on commodity prices,” Ashigbey warned. A dedicated Act would mandate a Stabilisation Fund, ensuring that when the “short-term phenomenon” of high gold prices inevitably ends, the nation isn’t left in a fiscal lurch.

    Tangible Benefits for Mining Communities

    The goal of these reforms is not just to fill the central government’s coffers. The Chamber argues that those living in the shadow of the mines must see the “boom” in their daily lives. Under their proposal, when prices “hit the roof,” specific infrastructure projects in mining communities would be automatically funded, creating a legacy that outlasts the gold rush.

     

     

  • Gold Boom vs. Long-Term Health: Chamber of Mines Proposes “Sustainable” Tax Reset

    Gold Boom vs. Long-Term Health: Chamber of Mines Proposes “Sustainable” Tax Reset

    By Adnan Adams Mohammed

    The Ghana Chamber of Mines (GCM) is pushing back against “punitive” government tax hikes, proposing instead a flexible 4 to 8 percent sliding royalty regime to ensure the industry remains viable when the market eventually cools.

    The proposal, submitted to the government this week, seeks to replace the current fixed royalty and levy structure with a more dynamic model. Central to the Chamber’s pitch is the removal of the 1% to 3% Growth and Sustainability Levy (GSL), which mining firms argue is a “double-tax” on production that hampers reinvestment.

    This comes at a time when global gold prices are shattering records above US$5,300 per ounce.

    The Chamber CEO, Ken Ashigbey, speaking during a TV discussion cautioned policymakers against what he termed an “Esau mentality” trading long-term industrial stability for a short-term revenue “mess of pottage.”

    “Eating on a constant and continual basis is better than eating one large meal once,” Ashigbey noted, referring to the government’s recent move to push royalty rates as high as 12% in some draft legislative instruments. “This price phenomenon is short-term. You don’t take decisions that are long-term in nature just based on a temporary surge.”

    The Proposed Fiscal Shift

    The Chamber’s counter-proposal is designed to be “equitable,” allowing the state to capture windfalls during booms while protecting mines from closure during price slumps.

    Feature Current/Govt Proposal Chamber’s Counter-Proposal

    Royalty Rate 5% to 12% (Sliding) 4% to 8% (Sliding)

    GSL 1% (on production) Abolish

    Community Dev. Varies 1% of Net Profit (New Fund)

    Price Floor N/A 4% Royalty if gold hits ~$1,900

    Investing the Windfall: Agriculture and Reserves

    Beyond the tax rates, the Chamber is calling for a radical rethink of how the state spends its mining revenue. Mr. Ashigbey urged the government to resist the temptation to spend the current windfall on immediate consumption. Instead, he proposed:

    ● The Minerals Revenue Management Act: A new legal framework to mandate the channeling of mining proceeds into a Stabilisation Fund.

    ● Commercial Agriculture: Using mining gains to “oil” other sectors, specifically large-scale farming, to ensure economic growth continues even after the gold is gone.

    ● Community Visibility: The proposed 1% net-profit contribution would go into a dedicated fund so mining communities can point to specific, tangible projects funded by the gold boom.

    Including the “Small-Scale” Giants

    The Chamber also highlighted a significant shift in production dynamics: the small-scale mining sector now produces more than half of what the large-scale sector generates. Ashigbey argued that formalizing and properly taxing this sector is critical to national revenue.

    “When the percentages are right, they [small-scale miners] would also be able to put a bit into the kitty,” he said, suggesting that a fair, predictable rate would encourage formalization rather than evasion.

    A Crossroads for the Cedi

    The call for a Minerals Revenue Management Act comes at a time when Ghana’s macroeconomic stability including the strength of the Cedi and easing inflation remains heavily “predicated on commodity prices.”

    “Tomorrow, when things are not good, you need to be able to recover,” Ashigbey warned. “For us, in the short term, everything looks very good, but we need to be thinking about the medium term.”