Govt policies scaring off mining investors – Minority

The Minority in Parliament has issued a scathing critique of the Mahama-led administration over what it describes as a series of misguided and damaging decisions in the mining sector.
In a detailed five-page letter dated April 21, 2025, and addressed to the Ministers of Finance and Lands and Natural Resources, the Minority warned that recent government actions risk reversing years of progress in attracting foreign direct investment (FDI), especially in the gold mining industry — a cornerstone of Ghana’s economy.

Mounting investor concerns
The letter, signed by key opposition figures — Kojo Oppong Nkrumah, Ranking Member on the Economy and Development Committee; Kwaku Ampratwum Sarpong, Ranking Member on Lands and Natural Resources; and Dr. Mohammed Amin Adam, Ranking Member on the Finance Committee — details what the Minority calls “a troubling pattern” of decisions taken within the past three months.
These moves, they argue, have unsettled investor confidence and cast a shadow over Ghana’s reputation as a stable, predictable destination for mining investment.
“These actions have generated high levels of discomfort among the investor community and have the potential impact of quickly eroding the gains Ghana has made in attracting foreign direct investments,” the letter states.

New tax measures seen as a burden
At the heart of the Minority’s concerns is the introduction of two new tax measures under the 2025 revenue framework.
These include a two percent Growth and Sustainability Levy on gross mining volumes, as well as an additional levy set to be introduced from 2026 to 2028.
The Minority argues that these taxes are effectively additional royalties that disproportionately affect mining firms already facing financial difficulties — particularly those that have not benefitted from recent high gold prices.
They warn the measures could deepen losses, force cost-cutting measures, and ultimately lead to layoffs in an already vulnerable sector.

Controversial GOLDBOD
Perhaps the most contentious of the government’s moves, according to the Minority, is the passage of the GOLDBOD Act — a new law that prohibits foreign investors from engaging in gold trading and export.
The Minority claims the bill was fast-tracked through Parliament despite their opposition and in violation of Article 107(b) of the Constitution, which forbids retroactive laws that impact accrued rights.
“Contrary to the concerns expressed by the Minority caucus in Parliament, the bill was rushed through and has since been announced to have banned all foreign investors involved in gold trading and exports,” the letter reads.
Opposition MPs fear this sets a dangerous legal precedent and heightens foreign investor anxiety over the long-term security of their assets in Ghana.

Lease rejection for Goldfields
Another significant decision criticised in the letter is the government’s refusal to renew the mining lease of Goldfields Ghana Limited.
The Minority argues that the administration missed a valuable opportunity to renegotiate for better national terms, opting instead for outright rejection.
They warn this could send a negative message to long-standing investors about the predictability of Ghana’s regulatory environment.

Defunding of MIIF
The letter also highlights what the Minority calls a strategic misstep: the diversion of 80 percent of inflows away from the Minerals Income Investment Fund (MIIF). Established to enable the state to take equity positions in mining ventures, MIIF’s defunding suggests the government is retreating from its own commitment to long-term investment in the sector, according to the MPs.
“Investors and potential investors are being informed that the state does not have skin in the game,” the letter laments. “This signals to the markets that Ghana is pulling back from its commitment to securing a bigger share of mining resources.”

Security concerns and anti-investor rhetoric
The Minority also raised alarm over recent security threats to mining operations, particularly referencing a deadly attack on a mine site that left eight individuals dead.
They blame inflammatory public rhetoric targeting foreign investors for fuelling tensions and note the government’s failure to pursue thorough investigations as a worrying sign of deteriorating security conditions for operators in the sector.

Return of Galamsey
The opposition legislators further criticised the government’s abolition of the Community Mining Schemes, a move they believe has contributed to a resurgence in illegal mining, or galamsey.
They argue that instead of scrapping the schemes, the administration should have reformed and regulated them, noting that the proposed replacement — a system of Mining Cooperatives — remains vague and without a clear rollout plan.
“We are not surprised that galamsey activities have increased,” the Minority states bluntly, adding that the policy vacuum has created an opening for illegal operations to flourish once again.

Call for policy reversal to save the sector
In conclusion, the Minority calls on the government to urgently reconsider its approach to mining governance. They argue that Ghana’s fragile economic recovery hinges on policies that attract — not repel — investment, especially in high-capital sectors like mining.

“The current trajectory threatens not only immediate job losses and project disruptions, but also long-term damage to the country’s economic credibility,” the letter warns.
As Ghana navigates its post-COVID economic path and seeks to position itself as a hub for African resource development, the Minority insists that stability, clarity, and partnership must be the cornerstones of any mining sector policy.
Whether the government heeds these warnings remains to be seen — but the stakes, they argue, could not be higher.