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.

FEARS OF STALLED PROJECTS, LOST JOBS

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.

“We understand the rationale behind a sliding scale, but the structure must strike a sweet spot where government secures sustainable revenues while the industry continues to expand and reinvest,” Chief Executive Kenneth Ashigbey said.

“The current proposal does not strike that balance.”

The chamber didn't offer a counterproposal.

Ghana's mining regulator, known as the Minerals Commission, and the Lands and Natural Resources Ministry did not immediately respond to requests for comment.

Ghana’s large‑scale miners already pay a 3% growth and sustainability levy on top of the 3-5% flat royalty rate, both levied on gross revenue rather than profit, along with a 35% corporate income tax, 8% dividend tax and the state's 10% free carried interest, the chamber said.

Stability and development agreements should be reviewed and improved, but not cancelled outright, it said.

The chamber said it welcomed ongoing consultations with Ghana's minister of lands and natural resources and that a competitive and predictable fiscal regime was essential for sustaining investment.