By Stanley Senya
Accra, March 27, GNA – The Ghana Chamber of Mines has reaffirmed its dedication to working alongside the government to find approaches that ensure both the longevity of the industry and meet financial requirements.
In response to current debates surrounding critical topics within the mining industry—especially concerning the rise in the Growth and Sustainability Levy (GSL) and worries over national natural resource management—Mr. Ahmed Nantogmah, who serves as the Director of External Relations at the Chamber, stated that although the organization recognizes increased public focus on maximizing Ghana’s mineral resources, these conversations should avoid being clouded by misunderstandings.
He mentioned that the suggested rise in the GSL from 1 percent to 3 percent has ignited discussion, where supporters argue that Ghana hasn’t entirely captured the economic rent derived from its natural assets.
The Chamber highlighted, however, that mineral rent, which represents the remaining amount after deducting extraction expenses and investor profits, has typically amounted to less than 3 percent of GDP in the past.
While gold prices had risen significantly over recent years, the Chamber pointed out that not all mining firms experienced corresponding boosts in profits because of differing operational expenses and capital requirements.
Furthermore, the tax would affect manganese and bauxite producers, despite these minerals not seeing the same surge in prices as gold, which could result in a disproportionate economic strain.
Even with these reservations, the Chamber restated its dedication to working alongside the Ministry of Lands and Natural Resources as well as the Ministry of Finance to achieve a lasting resolution.
He emphasized current endeavors to boost local involvement in the industry, such as projects with the Ghana Stock Exchange and the Minerals Commission aimed at promoting the listing of mining companies.
From 2020 through 2023, members of the Chamber invested an average of $2.87 billion annually in local products and services. Additionally, they contributed $1.19 billion in taxes and provided $32 million for corporate social initiatives during this period.
Additionally, roughly 75 percent of mineral revenues flowed back into Ghana via local financial institutions, refuting assertions that a larger portion stays overseas with foreign investors.
The Chamber once again urged for the establishment of a legal framework akin to the Petroleum Revenue Management Act, aimed at enhancing transparency and accountability in how mining revenues are used.
Mr. Nantogmah conveyed the Chamber’s backing for augmenting financial resources allocated to the Ghana Geological Survey Authority (GSA). This increase aims to improve resource evaluation and enable Ghana to advance independently in mineral development or enter into advantageous strategic collaborations.
The report also praised the latest governmental initiatives aimed at stopping unauthorized mining activities and safeguarding the nation’s woodlands and aquatic resources.
“The Ghana Chamber of Mines reiterated its commitment to collaborating with all parties involved to optimize the nation’s mineral wealth for the shared prosperity of the people,” the statement noted.
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