The Chief Executive Officer of the Ghana Chamber of Mines, Dr Ing. Kenneth Ashigbey, has called on government to slow down ongoing reforms to mining royalties and deepen engagement with industry players to avoid jeopardising the sustainability of the sector.

Dr Ashigbey made the call on Tuesday while speaking to the media at a media soiree, where he addressed concerns surrounding proposed changes to Ghana’s mining fiscal regime, including royalty structures and taxation.

He disclosed that the Chamber has already held an initial engagement with the Minister for Lands and Natural Resources on the proposed review of royalties. According to him, the mining industry is not opposed to the introduction of a sliding royalty scale, but stressed that the timing, thresholds and broader fiscal context are critical.

“For us as an industry, we are not averse to the sliding scale. The challenge is at what point you are putting the sliding scale and the context in which you are putting us,” he said.

Dr Ashigbey referenced the lithium sector, noting that government’s position on lithium royalties has been debated extensively over a long period, and that the differences between policy intentions and implementation are not significant in that case.

However, he described the situation surrounding gold royalties as more concerning, describing it as immediate and far-reaching.

He noted that government’s current position, which includes royalty levels of up to 11 percent, comes at a time when the industry is already grappling with high effective tax rates.

He further pointed to uncertainties surrounding Ghana’s growth and stabilisation framework and existing corporate income tax levels, arguing that the combined fiscal pressures could make the operating environment less competitive.

Dr Ashigbey said Ghana’s effective average tax rate in the mining sector is already high, and warned that rushing the proposed reforms could endanger the long-term viability of the industry.

“What we believe should happen is that government should wait and have more engagement. We should find a sweet spot that ensures government gets its revenue, while the industry remains sustainable,” he stated.

He cautioned that the pace at which the proposed legislation is being pursued, including a bill currently before Parliament, could undermine investor confidence if not carefully managed.

According to him, although the initial engagement on the bill was positive, more consultations are required to ensure that Ghana remains competitive and attractive to mining investment.

Dr Ashigbey emphasised that a balanced outcome would allow mining companies to continue growing and recruiting workers, while enabling government to generate revenue and create employment opportunities across the economy.

He therefore called on government to temporarily slow the legislative process to allow for broader dialogue involving all stakeholders, including policymakers, industry players and other interest groups.

“We need to put a brake on the process, bring all sides around the table, understand government’s policy rationale and find the best way forward so we don’t jeopardise the sustainable development of the industry,” he added