The Ministry of Finance has justified its decision to review the stability agreement government has with major mining firms AngloGold Ashanti and Newmont Ghana.

Government earlier this year set up a committee to re-negotiate the agreement with the two mining giants. However, the move appears not to have gone down well with some mining companies, which say it might affect further investments in the country.

A special adviser to the Finance Minister, Professor Newman Kusi however told Joy Business these agreements are no longer beneficial to the state.

“The agreements allow them not to pay certain taxes; different treatment on foreign exchange…different treatment royalties, none of these is beneficial to the country.

“The stability agreement should not lead to a loss, of revenue to the government…” he insisted.

Professor Newman also denies that government might have difficulties in re-negotiating the stability agreement of AngloGold Ashanti because of some clauses in their treaty.

“…Any agreement is subject to review at any point in time and that is why you go into negotiation…”

Meanwhile, the committee set up to review the whole stability framework should complete its work before the end of this year.

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