Accra: The New Patriotic Party (NPP) Minority in Parliament has called on the government to urgently introduce a fiscal regime to support local mining companies following the maturity of the Minerals and Mining Royalties Legislation. Mr. Patrick Yaw Boamah, NPP Member of Parliament for Okaikwei Central and Chairman of the Subsidiary Legislation Committee, presented this appeal on behalf of the Caucus during a news conference at Parliament House on Tuesday.
According to Ghana News Agency, Mr. Boamah highlighted that the Minerals and Mining Royalties legislation, initially laid before Parliament on December 19, 2025, has constitutionally taken effect today, March 10, 2026, after 21 sitting days. However, he pointed out that the government has not implemented promised policies, such as reducing the Growth and Stability Levy from three to one percent.
Mr. Boamah expressed concerns that the new royalties' regime might adversely affect the financial stability and investment potential of mining firms, possibly resulting in job losses for about one million people. He also warned that multinational companies might consider relocating to neighboring countries with more favorable extractive legislation, which could further weaken Ghana's standing in the global mining perception and investment index rankings.
He emphasized that Ghana is already facing a decline in global mining perception, with investments being redirected to countries such as Colombia, Peru, South Africa, and C´te d'Ivoire. Mr. Boamah stressed the importance of strategic actions to attract mining investments, noting that Ghana is projected to receive approximately seven billion dollars in mining investment inflows by the end of 2028. However, he cautioned that the new royalties legislation could jeopardize achieving this target.
Ghana's sliding scale royalties regime for the mining sector links royalty payments to commodity prices. Under this system, mining companies pay higher royalties when gold prices increase and lower rates when prices decrease. While this approach aims to stabilize government revenue, critics argue that it raises operational costs for mining firms during periods of high global prices, potentially deterring investment and threatening job security.