New policies will hurt mining sector growth - Minority to gov’t

The Minority in Parliament has warned the government. Recent decisions in mining could harm growth. They may drive away foreign investment and increase job losses.

On April 21, 2025, they sent a letter to key ministers. The opposition 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 industry. One is a 3% Growth and Sustainability Levy on gross mining volumes introduced this year.

An additional levy is planned for 2026 to 2028. The Minority warned these levies pressure distressed mines financially and discourage new investments.

“These royalty-like levies are worsening financial difficulties for several mines,” the letter stated. The MPs noted that companies mining other minerals face unfair burdens from these taxes.

The recently passed GOLDBOD Act also raised concerns. It bans foreign entities from gold trading and export. The Minority argues this sends negative signals to investors and violates the 1992 Constitution by retroactively affecting 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.

The Minority believes Ghana could have renegotiated better terms during renewal instead of pushing out an established operator.

They also expressed concern over defunding 80% of the Minerals Income Investment Fund (MIIF). This fund traditionally supports state equity interests in mining operations.

The Minority sees this step as a retreat from meaningful stakes in resource development.

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

The opposition also criticized abolishing Community Mining Schemes. They warned this decision allows 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.”