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.
Reuters reported last week that 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.
