Patrick Boamah Warns New Mining Regulations Could Lead to Job Losses

The Member of Parliament for Okaikwei Central and Chairman of the Subsidiary Legislation Committee, Patrick Boamah, has expressed concerns that the new mining regulations could make Ghana’s mining sector less attractive to investors.

Addressing journalists on Tuesday, March 10, Mr. Boamah warned that although the regulations may generate some revenue for the state, they could also result in significant job losses. “If you introduce this, you may accrue some revenue, but the net effect is some job losses. Close to about a million jobs. If you lose close to a million jobs because the investments required did not come in, you are not going to get the employees’ tax, tax from companies,” he said.

He therefore called on the government to reduce the Growth and Sustainability Levy on mining companies to one per cent to help cushion the firms and maintain investor confidence in the sector.

The Legislative Instrument introduces a sliding-scale framework that allows royalty rates to be adjusted in response to fluctuations in international commodity prices.The policy is intended to enable the state to generate more revenue during periods when global commodity prices are high.

The regulation also establishes a one per cent Community Development Fund for lithium mining to support infrastructure development in the Mfantseman Municipality and other mining communities.

Report by PKB