Minority slams Mahama administration over mining sector decisions

The Minority in Parliament has criticized the Mahama-led administration's actions in mining. They warn that these actions could harm Ghana’s reputation for foreign investment.

On April 21, 2025, they sent a five-page letter to the Ministers of Finance and Lands and Natural Resources. The Minority Caucus expressed concern over recent policy decisions affecting foreign direct investment (FDI), especially in gold mining.

The letter was signed by Kojo Oppong Nkrumah, Kwaku Ampratwum Sarpong, and Dr. Mohammed Amin Adam. They described a troubling pattern of policy missteps that send negative signals to investors.

“Investors are uncomfortable with these actions,” the letter stated. “They could quickly erode Ghana’s progress in attracting FDI.”

The Minority is particularly worried about new tax measures under the 2025 revenue framework. This includes a two percent Growth and Sustainability Levy on gross mining volumes.

They argue these levies act like royalties and hurt companies already struggling financially. This could lead to operational losses and job cuts.

The letter also criticizes the GOLDBOD Act, which bans foreign investors from gold trading and exports. The Minority claims this law violates Article 107(b) of the Constitution against retroactive laws affecting accrued rights.

“Following these levy increases, the government enacted the GOLDBOD Act,” they wrote. “This sets a dangerous precedent and raises investor anxieties.”

Additionally, they criticized the government's refusal to renew Goldfields Ghana Limited's lease. They believe renegotiation would have been better than outright rejection.

Such decisions may drive away established investors and harm future revenue flows. The Minority also expressed concern over diverting 80 percent of inflows meant for the Minerals Income Investment Fund (MIIF).

“This weakens the government’s commitment to strategic investment in mining,” they said. “It signals that Ghana lacks commitment to its mining resources.”

Beyond fiscal issues, they cited security problems, including an attack on a mine that killed eight people. They partly blamed inflammatory rhetoric against foreign investors for this incident.

A lack of accountability could further fuel insecurity in the sector, they warned. The resurgence of illegal mining (galamsey) activities is also linked to abolishing Community Mining Schemes.

Instead of scrapping these schemes, they should have been reformed for better accountability. The proposed Mining Cooperatives remain vague and poorly implemented, allowing illegal miners to exploit gaps.

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

In conclusion, the Minority urged urgent revisions to government policies in mining. They warned that current trends could lead to job losses and reputational damage for Ghana’s economy.

“Given our economic challenges, we must implement policies that attract investment,” emphasized lawmakers.