Dr Kwabena Duffuor – Finance Minister

The remarkable increase in the price of gold on the world market has not adequately benefitted government as anticipated.

It is for this reason that the Ministry of Finance & Economic Planning recently put together a seven-member team to review and re-negotiate stability agreements government signed with mining establishments to ensure that Ghana registered positive gains.     

In a speech to officially inaugurate the team, Dr Kwabena Duffuor, Minister of Finance & Economic Planning, said although Ghana’s mining sector was saturated with a lot of gold mines, dividends that yielded to the state from world prices of the commodity were trivial. 

In its 2012 Budget Statement, government upped the corporate mining tax from 25 to 35 per cent, announced a windfall tax of 10 per cent and established a uniform regime for capital allowance of 20 per cent over a five year period.      

According to Dr Duffuor, the task force will find out whether the stability agreements conform to provisions of the mining laws of Ghana.

It will further find out if the legal regime for mining and the laws therein are applicable to the stability agreements.     

The seven-member team will re-negotiate any agreement  creates no profits, decide on the extent to which the agreements tend to depart from mining leases granted to other mining companies and draft a new agreement possibly in the best interest of the country.     

Among several other issues to be considered include the current fiscal regime, the preparation of a framework or procedures and conditions that should govern stability agreements in the sector, reduction of exemptions granted as well as the promotion of local content.      

He noted that government expected mining companies and Ghanaians to evenly benefit from mining operations to help develop the country’s economy.

By Samuel Boadi



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