Taxes can make mining less attractive

Before the revision of taxes, mining contributed nearly 24 per cent to the country’s domestic tax revenues for last year.

Mr Trzebski said the government should strike a good balance to ensure that the mining industry continued to remain attractive, adding all stakeholders should work together in doing this.

“You really have to be careful because; will Ghana still remain attractive to mining companies after imposing the taxes. Australia is not as attractive as it used to be about three years ago in mining after increasing mining taxes for about 10 per cent,” the Austmine trade mission head said.

The delegation is made up of representatives of equipment and service providing companies in Australia which offer high-tech solutions for mining support. While some of the equipment and solutions make crushers more efficient, there are other chemicals that enhance the amount and value of gold extracted.

Mining experts say the ore grade across the world was getting lesser, a situation which called for high-end technology, such as provided by Austmine members, to make mining remain sustainable and profitable.

“We provide solutions to improve mining, in the light of rising cost amidst lowering prices. So around the world mining companies are thinking of smart ways of improving their productivity,” Mr Trzebski stated.

He said the delegation had engaged with some mining companies and local authorities on the benefits their investment in Ghana would mean for the industry, adding that “we are also monitoring the political situation to firm up our interest to invest here.”

He explained that Ghana, like Australia, was also having a shortage of skilled labour force for the mining industry and Austmine was ready to work with local partners to export skills and knowledge for Ghana in order to build a pool of skills set for the future.

For their choice of Ghana, Mr Trzebski said the country was stable and surrounded by many other resource-rich countries.

The delegation has since left for Burkina Faso, Ghana’s neighbour which is fast positioning itself as a major mining destination, with six active mines already operating there.

Story by Samuel Doe Ablordeppey