Govt’s mining decisions could spark job losses, repel investors – Minority

The Minority in Parliament has warned the government about its mining decisions. They say these choices could harm growth, deter foreign investment, and increase job losses.

In a letter dated April 21, 2025, they addressed the Ministers for Finance and Lands and Natural Resources. The Minority described recent policies as “potentially dire” for economic stability.

The letter was signed by Kojo Oppong Nkrumah, Kwaku Ampratwum Sarpong, and Dr. Mohammed Amin Adam. They criticized two new tax measures on the mining industry. These include a 3% Growth and Sustainability Levy introduced this year and another levy planned for 2026 to 2028.

The Minority warned that these levies add financial pressure on struggling mines. They also discourage new investments in the sector. “These royalty-like levies are putting several mines into graver financial difficulties,” the letter stated.

The MPs noted that companies mining other minerals face unfair burdens from these taxes. They expressed concern over the recently passed GOLDBOD Act. This act bans foreign entities from gold trading and export.

The Minority argues this move sends a negative signal to investors. It also violates the 1992 Constitution by retroactively affecting existing rights.

They condemned the government's refusal to renew Goldfields Ghana Limited’s mining lease. This rejection undermines investor confidence and discourages long-term commitments to Ghana.

According to them, Ghana could have renegotiated better terms during the renewal process instead of pushing out an established operator. Concerns were raised about defunding 80% of the Minerals Income Investment Fund (MIIF). The Minority believes this reflects a retreat from meaningful stakes in resource development.

Additionally, they referenced a violent incident at a mine that resulted in eight deaths. The Minority linked this attack to anti-investor rhetoric from public figures. They expressed dismay at the stalled investigation, which further undermines investor confidence.

The opposition also criticized abolishing Community Mining Schemes. They warned this decision has allowed illegal mining activities to expand instead of regulating them properly.

Calling for policy changes, the Minority urged the government to restore lease renewals and offer incentives. They emphasized avoiding hostile rhetoric and establishing a clear framework for local mining firms' growth.

“This is when government must bolster economic stability,” they concluded, “and attract rather than discourage foreign direct investment.”