Tax on exploration risks curtailing expected cash flow – GCM

President-Ghana Chamber of Mines (GCM), Joshua Mortoti, has appealed for government to relook the current mining fiscal tax regime – especially taxes on exploration activities.

He warned that these taxes are impacting negatively on the mining sector in terms of cash flow for the mining industry and country.

He added that introducing levies like the Growth and Stabilisation Levy (GSL) also endangers the continuous operation of some mines, which will turn out to hurt the state’s revenue objectives, threaten employment, mining support service firms and continued investments in host communities.

The GCM president made this request at the just-ended 9th Ghana Mining Industry awards dubbed ‘Celebrating Excellence; Embracing Sustainability Mining Practices’, which event took place in Accra.

Reiterating the Chamber’s commitment to supporting government in its pursuit of socio-economic development, he said the GCM is always ready to play its role.

“However, we wish to urge government to deepen collaboration with the industry for mutually beneficial policies which drive growth at all levels,” he stressed.

Acknowledging Ghana as country with abundant natural resources, Ing. Mortoti said the mining industry can only benefit from them if government decides to invest in exploration and incentivises the private sector to venture into the mining field.

He stressed that government cannot continue leaving exploration for mineral resources in the hands of private entities and expect to have most of the benefits when commercial finds are made.

Speaking on security, Ing. Mortoti said security at the mines continues to be a major problem for mining companies, and established that the Chamber is ready to collaborate with state institutions to help tackle and resolve this issue.

“Despite our challenges, we will continue to be proactive, operate in an environmentally and socially responsible manner – and will not renege on our commitment to sustainable development and a sustainable mining sector,” the president pledged.

Chief Executive Officer-GCM, Suleman Koney, speaking on the event’s theme indicated that it encapsulates the very essence of the industry’s journey – marked by challenges, achievements, innovation and a steadfast commitment to responsible and sustainable mining practices.

He said the theme, ‘Celebrating Excellence; Embracing Sustainable Mining Practices’, challenges the mining industry to push the boundaries of what it means to be excellent in this field of endeavour

“The theme calls on us to integrate innovation, efficiency, environmental stewardship and people-centred policies into our operations, and ensure that the benefits of mining trickle down to citizens.”

Mr. Koney further advised that mining should not only be about extracting resources but also about doing it ethically and sustainably to catalyse broad-based socioeconomic development for the nation.

Newmont Africa was adjudged Mining Company of the Year at the Awards night.

The prestigious Mining Company of the Year title is awarded to the company that has excelled in sustainable environmental management, occupational, health and safety, corporate social investment, mining innovation and fiscal contribution to the state.

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