Mining Sector Shatters Tax Records in 2023, Contributing GH₵11.55 Billion to Ghana’s Economy

In 2023, the mining sector made a remarkable contribution of GH₵11.55 billion (approximately US$980 million) in taxes, marking an impressive 81.1% increase from GH₵6.38 billion in 2022.

According to a report by the Ghana Chamber of Mines, this achievement established mining as the largest source of domestic tax revenue, accounting for 22.7% of all direct taxes and underscoring its critical role in the Ghanaian economy.

The rise in tax revenues is expected to significantly bolster government finances as Ghana aims to reduce public debt and stabilize the local currency, the cedi. The report, titled “Publish What You Pay – 2023,” details the financial contributions of 14 member companies for the past year, revealing that mineral exports reached US$7.8 billion—a 15% increase from the previous year’s US$6.8 billion.

The mining sector represented 47% of the nation’s gross merchandise exports, surpassing traditional export leaders like cocoa and oil, and affirming its dominance in Ghana’s trade landscape.

Additionally, the report highlighted that US$4.2 billion (71.3%) of tax revenues was reinvested into the local economy.

This comes at a time when the government is facing pressure to stabilize the cedi, which has shown volatility in recent months.

Mining companies also invested around US$5.4 billion in local products, services, and community projects, with US$3.146 billion specifically allocated for local procurement. This investment aligns with Ghana’s efforts to enhance local content and encourage greater participation of Ghanaian businesses in the mining value chain.

Moreover, the sector committed US$31.53 million to corporate social responsibility initiatives in host communities, focusing on education, healthcare, and infrastructure development.

These initiatives aim to alleviate the social and environmental impacts associated with mining activities.

Despite these positive contributions, there are ongoing concerns about environmental degradation linked to illegal mining, which the Chamber of Mines has noted poses risks to the investments of its member companies.

In response to these issues, environmental groups, civil society organizations, and labor unions have called for stricter regulations to protect forest reserves and water bodies.

As a result, the government is taking steps to revoke the controversial Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (L.I. 2462), which permitted mining in protected areas.

The Ghana Chamber of Mines emphasizes its commitment to transparency, providing detailed disclosures on tax payments, expenditures, local procurement, and corporate social responsibility efforts made by its member companies. Among those recognized for their contributions to the sector’s performance in 2023 are Abosso Goldfields Limited, Adamus Resources Limited, AngloGold Ashanti Iduapriem Limited, AngloGold Ashanti Obuasi Limited, Asanko Gold Mine Limited, and Asante Gold Chirano Limited, along with others such as FGR Bogoso Prestea Limited, Ghana Manganese Company Limited, and Newmont Ghana Gold Limited.