Minority urges government to cushion mining firms as royalties law takes effect

Accra, March 10, – The Minority Caucus of the New Patriotic Party in Parliament has called on government to introduce urgent fiscal measures to support mining companies following the coming into force of the Minerals and Mining Royalties legislation.

Mr Patrick Yaw Boamah, Member of Parliament for Okaikwei Central and Chairman of the Subsidiary Legislation Committee, made the appeal during a press briefing at the Parliament of Ghana in Accra.

He explained that the royalties legislation, which was laid before Parliament on December 19, 2025, had matured on Tuesday, March 10, 2026, after the constitutionally required 21 sitting days.

Mr Boamah said the Minority was concerned that government had not yet implemented supporting policies promised to mitigate the impact of the regime on mining firms.

He cited the proposed reduction of the Growth and Stability Levy from three per cent to one per cent as one of the measures yet to be rolled out.

According to him, failure to implement such interventions could affect the financial sustainability of mining companies and threaten jobs within the sector.

He also warned that multinational mining firms might consider relocating their investments to countries with more favourable regulatory environments.

“Ghana is already declining in the global mining perception rankings, with investments moving to countries such as Colombia, Peru, South Africa and Côte d’Ivoire,” he said.

Mr Boamah added that Ghana was expected to attract about seven billion dollars in mining investments by 2028, but the new royalties framework could undermine that projection if additional fiscal relief measures were not introduced.

Under Ghana’s sliding scale royalties system, payments by mining companies are linked to prevailing commodity prices, with higher royalties paid when prices increase and lower rates applied when prices fall.

While the system is intended to stabilise state revenue, critics argue that it raises operational costs for mining companies during periods of high global commodity prices.

GHBUSS

10 March 2026