The Minority in Parliament has issued a strong warning to the government over what it describes as damaging policy choices in the mining sector. In a detailed letter dated April 21, 2025, addressed to the Ministers of Finance and Lands and Natural Resources, the group raised alarms about recent decisions that could, in their view, drive investors away, shrink the economy, and cause more job losses.

The letter, signed by Kojo Oppong Nkrumah (Ranking Member on the Economy and Development Committee), Kwaku Ampratwum Sarpong (Ranking Member on the Lands and Natural Resources Committee), and Dr. Mohammed Amin Adam (Ranking Member on the Finance Committee), described the current approach to mining regulation as “potentially dire” for the country’s economic stability.

Among their key concerns is the introduction of new tax burdens on the mining industry. These include a 3% Growth and Sustainability Levy on gross mining output, which took effect this year, and an additional levy scheduled for the years 2026 to 2028.

Mr.Kojo Oppong Nkrumah

“These royalty-like levies are putting several mines already in distress into graver financial difficulties,” the letter stated. The Minority argued that the taxes are particularly harsh on companies mining minerals that have not seen price increases, making the levies seem unfair and unsustainable.

The group also expressed serious reservations about the recently passed GOLDBOD Act, which prohibits foreign firms from engaging in gold trading and export. According to the Minority, this move not only goes against the spirit of Ghana’s 1992 Constitution — by applying the law retroactively — but also damages Ghana’s image as an investment-friendly destination. “It sends a negative signal to the global investor community,” the MPs warned.

In addition, the Minority condemned the government’s refusal to renew the mining lease of Goldfields Ghana Limited. They argued that this action discourages long-term investment and undermines confidence in the country’s business environment. Instead of denying the lease, they believe the government could have used the renewal opportunity to negotiate improved terms.

Another major issue raised in the letter is the significant cut in funding to the Minerals Income Investment Fund (MIIF), which plays a key role in supporting Ghana’s equity interests in the mining sector. According to the Minority, the 80% budget cut to MIIF shows a lack of commitment to securing the country’s stake in natural resource development.

The MPs also drew attention to a violent incident at a mine, where eight people reportedly lost their lives. The Minority linked this event to growing anti-investor rhetoric and criticized the slow pace of investigations. They warned that such instability only deepens the fears of investors and could harm the country’s image further.

Lastly, the Minority took issue with the government’s decision to cancel Community Mining Schemes. They argued that abolishing the program has opened the door for illegal mining to thrive. “Instead of scrapping the initiative, the government should have formalised and regulated it,” the group insisted.

In their closing remarks, the Minority called on the government to take immediate action to restore confidence in the mining sector. They urged the administration to bring back lease renewals, provide incentives, stop hostile commentary, and develop a solid plan to grow local mining companies. “This is the time when government must bolster economic stability and attract, rather than discourage, foreign direct investment,” they concluded.Source:dailymailgh.com