By Kofi Ahovi
Government has begun reviewing the stability agreement with some mining giants including AngloGold Ashanti and Newmont Ghana.
Government hopes to finalize review process very soon to ensure a win-win situation for both parties.
The stability agreement spells out rights and privileges, usually guaranteed the mining firms over a number of years. It seeks to create an enabling economic, fiscal and stable environment for the protection of investment.
Government is reviewing some aspects of the agreements relating to mining leases and royalties and taxes due the state because it believes the country could benefit more from its mineral resources.
The government plans to increase the royalties payable by the mining companies from 3% to 5% and corporate tax rate of 30% for a period of 10 years from 15 years among others.
However, the Chief Executive of the Chamber of Mines, Dr. Joyce Aryee has advised government to be tactful in order not to send the wrong signals to investors.
“It has implications not only for the mining industry but for all foreign direct investors because the signal is that even though I have signed a contract with you at a certain time I want to look at it again so it is like I want to change the goal post,” she said on a radio station last week.
Under the old agreement, Ghana was requested by AngloGold to extend the term of mining lease relating to the Obuasi Mines due to expire in 2024 by 30 years until 2054.
Government was expected to maintain the royalties payable by AngloGold Ashanti with respect to its mining operations in Ghana at a rate of 3% for a period of 15 years, as well as maintain a fixed corporate tax rate for AngloGold Ashanti and each of its Ghanaian subsidiaries at a rate of 30% for a period of 15 years.
The old agreement also permits AngloGold Ashanti and any or all of its subsidiaries in Ghana to retain up to 80% of its export proceeds in foreign currencies offshore.
The old agreement further immunes the mining companies from the adverse effect of any new enactments or orders, or by changes to the levels of payments of any customs or other duties relating to mining operations, taxes, fees and other fiscal imposts or laws relating to exchange control, transfer of capital and dividend remittance for a period of 15 years.
Government has begun reviewing the stability agreement with some mining giants including AngloGold Ashanti and Newmont Ghana.
Government hopes to finalize review process very soon to ensure a win-win situation for both parties.
The stability agreement spells out rights and privileges, usually guaranteed the mining firms over a number of years. It seeks to create an enabling economic, fiscal and stable environment for the protection of investment.
Government is reviewing some aspects of the agreements relating to mining leases and royalties and taxes due the state because it believes the country could benefit more from its mineral resources.
The government plans to increase the royalties payable by the mining companies from 3% to 5% and corporate tax rate of 30% for a period of 10 years from 15 years among others.
However, the Chief Executive of the Chamber of Mines, Dr. Joyce Aryee has advised government to be tactful in order not to send the wrong signals to investors.
“It has implications not only for the mining industry but for all foreign direct investors because the signal is that even though I have signed a contract with you at a certain time I want to look at it again so it is like I want to change the goal post,” she said on a radio station last week.
Under the old agreement, Ghana was requested by AngloGold to extend the term of mining lease relating to the Obuasi Mines due to expire in 2024 by 30 years until 2054.
Government was expected to maintain the royalties payable by AngloGold Ashanti with respect to its mining operations in Ghana at a rate of 3% for a period of 15 years, as well as maintain a fixed corporate tax rate for AngloGold Ashanti and each of its Ghanaian subsidiaries at a rate of 30% for a period of 15 years.
The old agreement also permits AngloGold Ashanti and any or all of its subsidiaries in Ghana to retain up to 80% of its export proceeds in foreign currencies offshore.
The old agreement further immunes the mining companies from the adverse effect of any new enactments or orders, or by changes to the levels of payments of any customs or other duties relating to mining operations, taxes, fees and other fiscal imposts or laws relating to exchange control, transfer of capital and dividend remittance for a period of 15 years.
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