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Modes of Governance and Revenue Flows in African MiningArtisanal Mining in Ghana: Institutional Arrangements, Resource Flows and Poverty Alleviation

Modes of Governance and Revenue Flows in African Mining: Artisanal Mining in Ghana: Institutional... [Over the past decade, Ghana’s policymakers have become increasingly preoccupied with extracting a larger share of profits from booming large-scale mineral exploration and mining activities. The series of generous tax breaks enshrined within reformed mining policy described in Chapter 3 by Thomas Akabzaa, including low royalty rates on profits, the freedom to repatriate considerable shares of revenues and lengthy tax holidays, has, over the past two decades, netted the government disappointing financial returns. This has particularly been the case for gold, the annual production of which in Ghana exceeds US$3 billion dollars.1 In an effort to capture a greater share of revenue from this production, and as also described in Chapter 3, the government has, in recent years, overhauled ‘reformed’ legislation and proposed that a number of other amendments be made to mining investment policy. Key among these changes has been the modification of the royalty rate (Mozart Dzawu, 2011), from 3 per cent to 5 per cent, which took effect in 2011, and a proposed windfall tax (Adoboe, 2012).] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Modes of Governance and Revenue Flows in African MiningArtisanal Mining in Ghana: Institutional Arrangements, Resource Flows and Poverty Alleviation

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Publisher
Palgrave Macmillan UK
Copyright
© Palgrave Macmillan, a division of Macmillan Publishers Limited 2013
ISBN
978-1-349-46675-7
Pages
138 –163
DOI
10.1057/9781137332318_5
Publisher site
See Chapter on Publisher Site

Abstract

[Over the past decade, Ghana’s policymakers have become increasingly preoccupied with extracting a larger share of profits from booming large-scale mineral exploration and mining activities. The series of generous tax breaks enshrined within reformed mining policy described in Chapter 3 by Thomas Akabzaa, including low royalty rates on profits, the freedom to repatriate considerable shares of revenues and lengthy tax holidays, has, over the past two decades, netted the government disappointing financial returns. This has particularly been the case for gold, the annual production of which in Ghana exceeds US$3 billion dollars.1 In an effort to capture a greater share of revenue from this production, and as also described in Chapter 3, the government has, in recent years, overhauled ‘reformed’ legislation and proposed that a number of other amendments be made to mining investment policy. Key among these changes has been the modification of the royalty rate (Mozart Dzawu, 2011), from 3 per cent to 5 per cent, which took effect in 2011, and a proposed windfall tax (Adoboe, 2012).]

Published: Nov 23, 2015

Keywords: Gold Mining; Local Economic Development; Royalty Rate; Gold Price; Artisanal Mining

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