The Ghana Chamber of Mines has issued a robust defense of the mining sector’s economic contributions amid debates over a proposed hike in the Growth and Sustainability Levy (GSL), urging policymakers to balance fiscal demands with industry viability.
The levy, which would rise from 1% to 3% on mining revenues, has drawn criticism from the Chamber, which argues it risks destabilizing a sector already grappling with cost pressures and uneven commodity gains.
In a March 26 statement, the Chamber acknowledged calls for Ghana to capture greater value from its mineral wealth but challenged claims of underperformance. It noted that mineral rent—the residual value after accounting for extraction costs and investor returns—has historically averaged less than 3% of GDP, reflecting the capital-intensive nature of mining. While gold prices have surged in recent years, the Chamber emphasized that operational costs, currency depreciation, and investment needs have eroded profit margins for many firms.
The proposed levy would also apply to manganese and bauxite producers, despite stagnant prices for these minerals compared to gold. “A one-size-fits-all levy ignores market realities,” the Chamber stated, warning of potential job losses and reduced competitiveness.
The industry body reaffirmed its commitment to collaborating with the Ministries of Lands and Natural Resources and Finance to design equitable fiscal policies. It also traced Ghana’s mining evolution from 1960s nationalization—which triggered economic decline—to today’s globally aligned lease-based royalty-tax system.
Between 2020 and 2023, Chamber members injected an annual average of $2.87 billion into local economies through procurement of Ghanaian goods and services, while contributing $1.19 billion in taxes and royalties and $32 million in community development projects. Additionally, 75% of mineral revenues were repatriated via domestic banks, countering perceptions of offshore profit retention.
To deepen local participation, the Chamber is partnering with the Ghana Stock Exchange and Minerals Commission to encourage mining firms to list shares publicly. It also reiterated calls for a Mining Revenue Management Act, mirroring petroleum sector laws, to ensure transparent allocation of mineral revenues.
The Chamber backed increased funding for the Ghana Geological Survey Authority (GGSA) to improve resource mapping, which could enable strategic partnerships or state-led mining ventures. It also praised recent government crackdowns on illegal mining, which has degraded ecosystems and undercut formal sector growth.
“While debate over the levy continues, our focus remains on policies that ensure long-term sector sustainability,” the statement concluded.
The pushback comes as Ghana seeks to optimize mining’s role in economic recovery. With gold accounting for 40% of export earnings, the outcome of this fiscal debate could shape the industry’s trajectory—and its ability to fund national development priorities.
