Chamber of Mines Thanks Government for Dropping Exploration VAT
The Ghana Chamber of Mines has lauded the government’s decision to scrap Value Added Tax (VAT) on exploration activities, describing it as a crucial step towards bolstering the country’s long-term mineral potential.
The announcement came during the 11th Ghana Mining Industry Awards (GMIA) held at the Movenpick Hotel. Ing. Dr. Kenneth Ashigbey, CEO of the Chamber, hailed the move as a strong signal of Ghana’s commitment to becoming a more attractive destination for mining investment.
Dr. Ashigbey emphasized that removing VAT on exploration, as outlined in the 2026 Budget, is more than just an administrative change. “This intervention is not just an administrative adjustment; it is a bold commitment to attracting new investments,” he stated. “It will sustain Ghana’s mineral reserves and reinforce the country’s competitiveness as a mining destination.”
He expressed hope that the same collaborative spirit would continue to shape discussions around the mining royalty regime, leading to policies that benefit both Ghana and the industry.
Mr. Michael Edem Akafia, President of the Ghana Chamber of Mines, echoed this sentiment, calling the VAT exemption a strategic move to secure the future of the mining sector. He specifically acknowledged the support of President John Dramani Mahama, Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah, and Finance Minister Dr. Ato Forson in enacting this pro-investment measure.
Industry analysts have consistently argued that VAT on exploration placed a significant financial burden on mining companies, particularly those in the early stages where the viability of a project is still being assessed. The removal of this tax is anticipated to attract increased investor interest, expand geological exploration efforts, and ultimately lead to the discovery of new mineral resources.
Dr. Ashigbey further highlighted the wider economic benefits, explaining that exploration investments translate into job creation, stronger local economies, and enhanced community development initiatives in mining regions.
The mining industry is a cornerstone of the Ghanaian economy, contributing substantially to export earnings, government revenue, and employment. Industry leaders believe this government support positions Ghana favorably to attract global exploration firms and unlock further value from its mineral wealth.
Both the CEO and the Chamber President reaffirmed their commitment to working with the government to foster policies that promote investment, transparency, and sustainable growth within the sector.
At the awards ceremony, AngloGold Ashanti Iduapriem Mine was awarded Mining Company of the Year, while Dr. Catherine Kuupol Kutor, General Manager of Gold Fields Tarkwa Mine, received the Mining Personality of the Year award. A Lifetime Achievement Award was also posthumously presented to the late Kwame Addo-Kufuor for his significant contributions to the industry.
The 11th Ghana Mining Industry Awards were sponsored by Gold Fields, AngloGold Ashanti, Zijin Golden Ridge, Newmont, Newcore/Cape Coast Resources, Perseus Mining Ghana Limited, UMA, Sandvik Ghana, Interplast, and Stanbic Bank, with additional support from SMT Ghana, Asanko Gold Ghana, DRA, Mining Tools Ghana, Carmeuse Lime Products, and Liebherr.
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