Mining sector top tax contributor with record GH₵11.55bn

The mining sector contributed a record GH₵11.55billion (US$980million) in taxes in 2023, an 81.1 percent increase from GH₵6.38billion in 2022 – making it the largest source of domestic tax revenue according to a report by the Ghana Chamber of Mines.

The sector accounted for 22.7 percent of all direct taxes, highlighting its significant role in the economy.

The surge in tax revenues is expected to provide a significant boost to government coffers as Ghana works to reduce its public debt and stabilise the local currency, the cedi.

The report, ‘Publish What You Pay – 2023′, which features financial contributions of some 14 member-companies of the Chamber for last year, said mineral exports reached US$7.8billion during the year under review – a 15 percent rise from the previous year’s US$6.8billion. The sector accounted for 47 percent of the country’s gross merchandise exports.

This places the sector ahead of cocoa and oil, traditionally the economy’s main export drivers, solidifying mining’s dominance in the country’s trade portfolio.

The report also showed that US$4.2billion (71.3 percent) was returned to the economy.

This comes as government faces pressure to stabilise the cedi, which has experienced volatility in recent months.

In addition to foreign exchange contributions, mining companies spent some US$5.4billion on local products, services and community projects – with US$3.146billion dedicated to local procurement.

This development aligns with the country’s efforts to promote local content and enhance Ghanaian businesses’ participation in the mining value chain.

Furthermore, the sector allocated US$31.53million toward corporate social responsibility initiatives in host communities: including investments in education, healthcare and infrastructure development. These efforts aim to mitigate the social and environmental impact of mining activities.

The mining sector’s robust performance provides crucial fiscal relief as government seeks to balance its budget and implement austerity measures.

Despite these positive contributions, concerns about environmental degradation linked to illegal mining remain significant….with the Chamber severally indicating the danger it poses to investments of member-companies.

In recent times, environmentalist groups, Civil Society Organisations (CSOs) and organized labour have called for stronger regulation to protect forest reserves and water-bodies.

This pressure has led government to initiate processes for revoking the controversial Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (L.I. 2462), which allowed mining in protected areas.

Ghana Chamber of Mines said its report reflects commitment to transparency, providing detailed disclosures on tax payments, expenditures, local procurement and corporate social responsibility investments by its member-companies.

Also, it said the following member-companies actively contributed to the sector’s performance in 2023: Abosso Goldfields Limited, Adamus Resources Limited, AngloGold Ashanti Iduapriem Limited, AngloGold Ashanti Obuasi Limited, Asanko Gold Mine Limited and Asante Gold Chirano Limited.

The rest are FGR Bogoso Prestea Limited, Ghana Manganese Company Limited, Golden Star Wassa Limited, Gold Fields Ghana Limited, Newmont Ghana Gold Limited, Newmont Golden Ridge Limited, Asante Gold Bibiani Limited and Perseus Mining (Ghana) Limited.