Ghana’s mines chamber seeks higher royalty share for mining communities
Despite its rich and diverse mineral resources, the contribution of mining to economic development remains a ….
Despite its rich and diverse mineral resources, the contribution of mining to economic development remains a recurring debate across Africa. In Ghana, this question has returned to the forefront as the government reforms its royalty regime to boost public revenue.
In this context, the Ghana Chamber of Mines is advocating for at least 30% of mining royalties to be returned to host communities, up from the current 20%.
This proposal, reaffirmed in a statement issued on June 25, was defended by former Chamber president Michael Edem Akafia during the organisation’s annual general meeting. Chamber CEO Ken Ashigbey had already supported this position in May.
The demand concerns the Minerals Development Fund (MDF), a public fund that finances projects in mining areas. It currently receives 20% of the royalties collected by the state.
The Chamber argues that an increase is justified given the sector’s strong performance this year, driven by rising gold production and prices.
Declared mining royalties reached 5.41 billion cedis ($482 million) in 2025, up from 4.90 billion cedis the previous year.
This demand comes as the government introduced a new royalty system indexed to gold prices, increasing the rate to up to 12%, compared with 5% previously. While the reform aims to raise state revenue, it has raised concerns among mining companies over higher tax burdens.
Criticism of limited mining benefits persists. Several organisations argue that communities near mines still face significant infrastructure and public service deficits.
In May, Ghana’s Institute of Economic Affairs called for not renewing Gold Fields’ mining lease for the Tarkwa mine, citing the socio-economic conditions of nearby localities.
The Tarkwa-Nsuaem Municipal Assembly acknowledges mining companies’ efforts but says MDF resources remain insufficient to meet development needs. Authorities have yet to respond publicly to the Chamber’s proposal.
Sonia DONKOR
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