Ghana’s mining reforms risk choking investment

Ghana’s main ‍mining industry body said on Monday that proposed changes to how the country manages tax and royalty terms risk deterring investment and slowing output. Africa’s top gold ⁠producer plans to scrap long-term mining investment stability agreements and double royalties under sweeping reforms,  The changes, which the ⁠country’s mining ‌regulator said were intended to boost state revenue and crack down on firms abusing the terms of their licenses, mean that stability agreements with Newmont, AngloGold Ashanti and Gold ⁠Fields will not be renewed.

A draft bill expected to go to parliament by March proposes royalties starting at 9% and rising to 12% if gold hits $4,500 per ounce or higher, roughly double the current 3%–5% range.The Chamber of Mines, ⁠which represents big mining companies, said in its statement on Monday that it backed the principle of a sliding-scale royalty system that would allow the state ‍to earn more at higher gold prices. But it warned that the current proposal would push Ghana further up the global effective tax curve, potentially stalling projects and costing jobs.