The Minister of Finance, Dr Cassiel Ato Forson, has proposed a two percentage-point reduction in the growth and sustainability levy as government pushes for the implementation of a new gold royalty regime that mining companies say could discourage investment.

The levy is imposed on the income of persons or entities engaged in mineral operations.

The offer was disclosed by the Chief Executive Officer of the Ghana Chamber of Mines, Kenneth Ashigbey, in comments to Reuters, amid ongoing negotiations between government and industry players.

Under the proposed policy, Ghana plans to replace its current flat royalty rate with a sliding scale of between 5 percent and 12 percent to allow the state to earn more revenue as global gold prices rise.

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According to Reuters, the royalty rate would increase by about one percentage point for every $500 increase in the gold price, similar to the system used in Burkina Faso.

The new royalty regime is expected to take effect 21 days from Tuesday, February 3, 2026, unless parliament amends the legislation.

However, Ken Ashigbey said mining companies are pushing for lower rates.

He noted that while the Chamber of Mines had asked for the complete removal of the growth and sustainability levy, government was only offering a partial concession.

“We asked that the 3% levy be removed entirely, but the minister is offering to take off only two points,” Ashigbey said.

The growth and sustainability levy was doubled to 3% in 2025. Mining companies in the country initially resisted the increase but later complied while talks with government continued, according to the mining sector regulator.

The Ministry of Finance and the Ministry of Lands and Natural Resources did not immediately respond to requests for comment. However, a government source familiar with the discussions confirmed that the minister had proposed the two percentage-point levy cut.

The source, according to Reuters said the finance minister remained open to further dialogue, but cautioned that parliament could still pass the royalty amendment in its current form unless an alternative proposal is submitted.

On the royalty framework, Ken Ashigbey said the Chamber of Mines is proposing a reduced range of 4 percent to 8 percent, with one percentage point allocated to a development fund for host mining communities.

He also called for wider price bands, warning that the current thresholds could push mines into higher royalty brackets too quickly, affecting higher-cost or less profitable operations.

“The question is whether government wants revenue on a sustainable basis or just in the next few years before investments move elsewhere,” he said.

MA

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