The Ghana Chamber of Mines has issued a stark warning that the government’s new tax policies are threatening to cripple the country’s exploration sector, which could eventually undermine the entire mining ecosystem. Speaking candidly on PM Express Business Edition, Acting Chief Executive of the Chamber, Ahmed Nantogmah, painted a troubling picture of a sector under siege.
“Exploration is the lifeline of mining,” Nantogmah said. “But with these new taxes, we’re not just choking investment, we’re punishing the very people willing to take the biggest risks.”
At the heart of the Chamber’s concern is the recent introduction of a 3% levy on gross production and a controversial Value Added Tax (VAT) on exploration activities. These policies, the Chamber argues, are making it financially unviable for many early-stage exploration firms to operate in Ghana.
“You can imagine putting $10 million into exploration, making no discovery, and still paying VAT on that failed attempt,” Nantogmah explained. “That VAT will not be refunded. It’s money thrown down the drain.”
That financial pressure is already pushing companies to look elsewhere. According to the Chamber, smaller exploration outfits, the ones who typically drive greenfield projects—are relocating to neighbouring countries like Côte d’Ivoire and Kenya, where governments have taken a more supportive approach to attracting investment.
“These companies are small,” Nantogmah said. “They don’t have deep pockets. That’s why they go to places like Kenya or Ivory Coast, where they don’t pay this VAT. So, you’ll see a movement of exploration companies going there.”
And the implications are serious. Without new exploration today, there won’t be new mines tomorrow. That spells trouble for a country that relies heavily on mining revenue.
Ghana, once seen as a top mining destination in West Africa, now risks falling behind in the race for resource discovery and development. The Chamber is urging the government to reconsider the new tax measures before it’s too late.
“Exploration isn’t a luxury, it’s a necessity,” Nantogmah stressed. “And if we don’t support it, we’re not just losing investment. We’re losing our future.”
