Ghana must resist the temptation to spend its mineral windfall in full and instead channel portions of increased mining revenue into forward-looking national projects and a stabilisation reserve, Chamber of Mines CEO Ken Ashigbey has warned.

“You see, eating on a constant and continual basis is better than eating one large meal once,” he said.

Speaking on Joy News’ PM Express Business Edition on Thursday, Mr Ashigbey cautioned against what he described as an “Esau mentality,” where short-term gains override long-term planning, even as global gold prices remain strong.

“This phenomenon is a short-term phenomenon,” he said. “You don’t take decisions that are long-term in nature just based on the phenomenon.”

He argued that Ghana must use the current commodity price boom wisely, riding the wave in a way that sustains the economy beyond the present moment.

“What you want to do is that you want to ride this particular wave in such a way that it will be able to extend you, but it would also continue to oil the room,” he said.

While stressing that the mining industry remains open to fair taxation, Mr Ashigbey said revenue mobilisation must be balanced to protect sustainability, production growth and future earnings.

“We are all open to fair taxation,” he stated.

He disclosed that when government proposed adjustments to royalty rates, the Chamber made a counteroffer grounded in equity and predictability.

The proposal was for royalties to slide between four and eight per cent, instead of moving sharply upward, while removing the Growth and Sustainability Levy and adding a 1% contribution to a dedicated development fund.

“One of the things that we believe should happen is that the people in these mining communities should be able to point also to the fact that when the prices of gold hit the roof, we were able to do this project, we were able to do that project,” he said.

The proposed fund, he explained, would support community development during boom periods and protect both the state and industry when prices decline.

“So that when prices come down to a particular 1900, you then would do a f4%,” he said.

According to him, the approach ensures the system can slide both up and down, making benefit sharing more equitable while keeping mines operational.

“It ensures that you are able to keep the wheels running,” he added.

Mr Ashigbey stressed that sustainability also depends on increasing output, noting that royalties are calculated using price and production volumes.

“If you are able to keep the price up and still keep the volumes up, then what you get on a sustainable basis would be better,” he said.

He further argued that Ghana must broaden its revenue base by fully integrating small-scale miners into the formal system.

He revealed that the small-scale sector now produces more than half of what large-scale mines generate, making their inclusion critical to national revenue mobilisation.

“When the percentages are right, they would also be able to put a bit into the kitty,” he said.

But beyond taxation, the Chamber of Mines believes the bigger question confronting the country is how the current gains are being used.

“As things are better now, as a country, what are we doing with the wins that we’re getting?” he asked.

He questioned whether Ghana is saving for difficult times ahead or investing in productive ventures that can outlive the mining cycle.

“Are we also putting aside money for the day when the prices will come down? Are we also putting it into projects?” he asked.

Mr Ashigbey welcomed government’s intention to channel mineral revenue into flagship initiatives such as the Big Push, but insisted the country must go further.

“We need to get to the point where we have a Minerals Revenue Management Act,” he said.

Such a law, he explained, must guarantee dedicated inflows into a stabilisation fund to protect the economy when commodity prices fall.

“So that tomorrow, when things are not good, you are able to recover,” he said.

He warned that Ghana’s current macroeconomic stability, including a strong cedi, easing inflation and improving interest rates, is heavily dependent on global commodity prices.

“All of that is predicated on commodity prices,” he noted, adding that Ghana has no control over global market swings.

“For us, in the short term, everything looks very good, but we need to be thinking about the medium term,” he said.

That medium-term thinking, he argued, requires deliberate investment of mineral gains into sectors such as commercial agriculture that can generate sustainable growth.

“When you have a Minister for Finance tell you that we’re looking into commercial agriculture, how are we moving the gains that are coming into things like that, that are a lot more forward-looking?” he asked.

Mr Ashigbey stressed that the call is not to deny citizens the benefits of mining revenue, but to ensure those benefits endure.

“We’re not saying that as a people we should not benefit out of it,” he said. “But what we are saying is that let’s live and let’s live so that everybody gets.”