Ghana: GHEITI urges lower mineral royalties for small-scale mining operators

The Ghana Extractive Industries Transparency Initiative (GHEITI) has recommended a reduced mineral royalty regime for small-scale miners, aiming to bring more operators into the formal tax and royalty system.

In its statement issued on Friday, March 13, GHEITI highlighted that lowering royalties for small-scale miners would create a favorable business climate for indigenous operators while ensuring compliance with national revenue objectives.

GHEITI noted that small-scale miners currently face high fiscal pressures, which can discourage formalization and limit growth opportunities. A reduced royalty framework, the initiative said, would help these miners enter the formal mining economy, pay royalties, and contribute to sustainable development.

The recommendation comes alongside calls to scrap the Growth and Sustainability Levy (GSL) for all mining companies, which, together with the proposed sliding-scale royalty of 5% to 12% for large-scale producers, could raise the fiscal burden on mining firms to unprecedented levels.

GHEITI stressed that the government and industry should continue dialogue on fiscal policies, ensuring that measures designed to optimize revenue do not undermine competitiveness, operational sustainability, or the development of Ghana’s small-scale mining sector.