Concerns Over Ghana's Mining Royalty Framework Amid Inadequate Consultation
Dr. Steve Manteaw highlights issues in Ghana's mining royalty framework, citing inadequate consultation on new royalty thresholds. The proposed sliding scale royalty system aims to equitably allocate risks and benefits based on commodity prices but may disadvantage smaller mining companies, particularly Ghanaian-owned firms. Calls for a windfall tax to capture profits during price booms date back to 2012 but have faced resistance from the industry.
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Dr. Steve Manteaw raised concerns about the lack of consultation in setting new royalty thresholds under Ghana's mining framework. He noted that current discussions have been spurred by recent lithium deals.
The royalty rate, currently at 5%, has remained unchanged due to the absence of ministerial prescriptions. Manteaw recalled calls for a windfall tax proposed by the Ghana Extractive Industries Transparency Initiative in 2012, aimed at capturing profits during commodity booms. The new sliding scale royalty system is intended to share benefits equitably, but may unfairly burden smaller firms, particularly Ghanaian-owned companies, as larger firms benefit from stability agreements.
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