Minister of Lands and Natural Resources Emmanuel Armah-Kofi Buah has disclosed that the government is currently developing a new instrument to guide royalty payments in the mining sector.
Speaking at a media engagement, the Minister stated that the new instrument regime adopts the sliding scale royalty regime, a tax system where the royalty rate varies based on a project’s financial or production metrics, such as the commodity price or output level.
He explained that the new system will ensure a responsive mechanism for the country to obtain the correct royalties.
According to him, the instrument has already been developed in collaboration with the Attorney-General and Minister of Justice, and will be laid before Parliament upon Cabinet approval.
”This structure is designed to safeguard investments while maintaining a competitive based royalty during periods of low prices,” he said.
He noted that the new approach will not be limited to lithium, but also to gold, diamonds, and other minerals.
He assured Ghanaians the government remains committed to ensuring that the new royalties instrument is approved by Parliament to ensure a win-win situation for the state and the company.
The Minister further revealed that the ratification of the entire deal was currently on hold pending the commencement of the new royalty regime.
The Minister attributed the Ewoyaa project’s hold to the global downturn in lithium prices. Mr Buah sees the new royalty regime as a chance to review the entire system.
“We know that jobs will be lost, the economy will be affected and we are aware of that. The new market rates call for a revision of the fiscal terms to protect the national interest,” he said.
By: Rainbowradioonline.com/Ghana
