Ghana’s mining sector is at risk of collapse if the government doesn’t revise its latest tax policies, the Ghana Chamber of Mines has warned. These measures, they say, could choke investment and force exploration companies to exit the country.

Speaking on PM Express Business Edition on Thursday, May 22, Acting CEO Ahmed Nantogmah criticized the government’s fiscal approach. He pointed to a 3% levy on gross production and a Value Added Tax (VAT) imposed on exploration activities as major threats.

“Exploration is the lifeline of mining,” Nantogmah stated. “These companies take huge risks. Now, the government is punishing them for that.”

He explained that the new tax affects core exploration activities like drilling and sample testing. This raises the cost of operations significantly, especially for smaller firms.

“Imagine spending $10 million on exploration and finding nothing—yet still paying VAT,” he said. “That money is gone forever. It’s not refunded.”

According to the Chamber, these changes discourage exploration. Most smaller firms can’t handle the extra financial burden and are already shifting to friendlier regions.

“Many of these companies are moving to Kenya and Côte d’Ivoire,” Nantogmah said. “They go where exploration is supported, not taxed.”

He added that Ghana is losing ground to its regional peers in attracting new mining projects. Without a steady pipeline of exploration, the country could see a sharp drop in mining production and revenue.

The Chamber is calling for urgent policy revisions. It wants the government to reconsider these tax measures before they do lasting harm to Ghana’s mining future.