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

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

On April 21, 2025, they sent a letter to the Ministers for Finance and Lands and Natural Resources. 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. It criticized two new tax measures: a 3% Growth and Sustainability Levy on gross mining volumes and an additional levy planned for 2026 to 2028.

The Minority warned that these levies are putting financial pressure on struggling mines. They also noted that companies mining other minerals face unfair burdens from the new taxes.

Another concern is the recently passed GOLDBOD Act. This act bans foreign entities from gold trading and export. The Minority argues this sends a negative signal to investors and 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.

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

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

The Minority sees this move as a retreat from Ghana’s goal of holding meaningful stakes in resource development.

In addition to economic issues, they referenced a violent incident at a mine that resulted in eight deaths. They linked this attack to anti-investor rhetoric from public figures.

They expressed dismay at the stalled investigation into the incident, which they say further undermines investor confidence.

The opposition criticized abolishing Community Mining Schemes, warning it allows illegal mining activities to expand. They argue that instead of scrapping it, the government should have formalized and regulated it.

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.”