The Minority Caucus of the Parliament of Ghana from the New Patriotic Party (NPP) has cautioned that the implementation of the Minerals and Mining Royalties legislation could negatively affect the country’s mining sector if urgent measures are not introduced to support local companies.
Addressing a news conference at Parliament House on Tuesday, Patrick Yaw Boamah, Member of Parliament for Okaikwei Central and Chairman of the Subsidiary Legislation Committee, said the legislation laid before Parliament on December 19, 2025, has now taken effect after completing the required 21 sitting days.
However, Mr Boamah said the government had yet to introduce complementary fiscal policies that were expected to cushion mining firms, including a promised reduction of the Growth and Stability Levy from three per cent to one per cent.
According to him, the absence of such measures could place financial pressure on mining companies and discourage new investments in the sector.
He warned that the new royalties framework might also have serious employment implications, potentially threatening about one million jobs linked directly and indirectly to the mining industry.
Mr Boamah further noted that multinational mining companies might consider relocating their investments to neighbouring countries with more competitive regulatory regimes.
He mentioned countries such as Colombia, Peru, South Africa and Côte d’Ivoire as emerging destinations attracting mining investment that could otherwise come to Ghana.
“Ghana is already declining in terms of global mining perception, with investments being diverted elsewhere. We must be strategic in attracting mining investments,” he stressed.
Mr Boamah added that Ghana is projected to receive about seven billion dollars in mining investment inflows by 2028, but warned that the new royalties regime could undermine efforts to achieve that target if it is not properly managed.
Under Ghana’s sliding-scale royalties system, mining companies pay royalties based on prevailing commodity prices. When gold prices increase, royalty payments rise accordingly, while lower commodity prices result in reduced royalty rates.
Although the framework is designed to stabilise government revenue, critics argue that it increases operational costs for mining firms during periods of high global prices, which could discourage investment and affect job security in the sector.
