Minority raises red flag over new mining policy, says it’s unattractive to investors

Kojo Oppong Nkrumah

The Minority in Parliament has criticized the Mahama-led administration. They warn that recent decisions in the mining sector harm Ghana’s investment image.

On April 21, 2025, they sent a five-page letter to the Finance and Lands ministers. The minority caucus expressed concern that these actions could reverse gains in foreign direct investment (FDI). This is especially true for Ghana’s gold mining industry.

The letter was signed by Kojo Oppong Nkrumah, Kwaku Ampratwum Sarpong, and Dr. Mohammed Amin Adam. They noted a troubling pattern of decisions made over the past three months. These decisions have created discomfort and uncertainty among investors.

The MPs highlighted two new tax measures targeting the mining sector. These include a two percent Growth and Sustainability Levy on gross mining volumes. An additional levy is planned for 2026 through 2028.

They argue these measures act like royalties and burden struggling companies. Many companies have not benefited from recent commodity price increases. The levies could worsen operational losses and lead to job cuts.

The Minority also criticized the GOLDBOD Act, which bans foreign investors from gold trading and exports. They claim this legislation was rushed through Parliament despite their objections. It violates constitutional protections against retroactive laws affecting accrued rights.

They fear this sets a dangerous precedent for investor security in Ghana. The letter states that after increasing levies, the government enacted the GOLDBOD Act without proper consideration.

Additionally, they condemned the government's refusal to renew Goldfields Ghana Limited's mining lease. They believe this decision fails to recognize opportunities for renegotiation with established investors.

This approach risks driving out valuable investors and may hurt future revenue projections. Another issue raised is the defunding of the Minerals Income Investment Fund (MIIF). The government reportedly diverted 80 percent of its inflows away from its intended purpose.

This undermines state investment in strategic mining ventures and signals reduced commitment to resource development. The lawmakers warned this move further erodes investor confidence in Ghana’s long-term profitability.

“Investors see that the state lacks confidence in its own sector,” they stated. “This indicates Ghana is pulling back from securing more mining resources.”

The letter also mentioned recent security concerns following an attack on a mine that killed eight people. The Minority linked this incident to inflammatory rhetoric aimed at foreign investors.

They expressed worry that such language fosters insecurity among mining companies operating in Ghana. Additionally, they connected rising illegal mining activities to abolishing Community Mining Schemes.

Instead of shutting down these schemes, they suggest reforming them for accountability. They noted that promised replacements remain poorly defined, leaving room for illegal miners to exploit gaps.

“The reasons given by the Minister for banning Community Mining Schemes were uncalled for,” they said. “We are not surprised galamsey activities have increased.”

In conclusion, the lawmakers urged the government to rethink its approach to mining policies. They argue that current economic conditions require strategies encouraging investment rather than deterring it.

According to them, failing to change course threatens jobs and disrupts projects while damaging Ghana’s economic credibility long-term.