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 mining harm Ghana’s image as an investment destination.

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 are part of the 2025 revenue framework. One is a two percent Growth and Sustainability Levy on gross mining volumes. The other levy will take effect from 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 lawmakers fear these levies may lead to job cuts in the sector.

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 worry 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.

According to them, such actions could harm long-term revenue projections in the sector. Another issue raised is 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 lack of commitment to resource development. The lawmakers warned this erodes investor confidence further.

“Investors see that the state does not have skin in the game,” they stated. “This shows Ghana is pulling back from securing more mining resources.”

Beyond fiscal issues, they mentioned recent security concerns following an attack on a mine that killed eight people. They attribute this incident partly to negative rhetoric aimed at foreign investors.

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

Instead of shutting down these schemes, they argue reforming them would ensure accountability. They noted that promised replacements remain poorly defined and lack implementation frameworks.

“The reasons provided for banning Community Mining Schemes were uncalled for,” they said, adding it’s no surprise galamsey activities have risen.

In conclusion, they urged the government to reconsider its approach to mining policies. They argued that current economic circumstances require policies encouraging investment as Ghana rebuilds after fiscal challenges.

The Minority believes ongoing actions threaten immediate job losses and long-term economic credibility.