Bloomberg News

Ghana Not Planning Windfall Tax on Gold, Minister Says

October 11, 2011

(Updates with comment from minister in third paragraph.)

Oct. 11 (Bloomberg) -- Ghana, Africa’s second-biggest gold miner, has no immediate plans for a so-called windfall tax on producers of the precious metal, said Deputy Finance Minister Seth Terkper.

The price of gold is “volatile” and a windfall tax may affect companies that invested in Ghana when the commodity’s price was lower and now want to recoup their costs, he said in an interview in Accra, the capital, today.

“Some might have incurred losses in the early stages of production so we can’t just charge extra taxes on the spur of the moment,” he said.

Ghana changed the royalty rate that it charges mining companies to a fixed 5 percent from a previous range of 3 percent to 6 percent, Dan Owiredu, president of the Ghana Chamber of Mines, said in May.

South Africa’s AngloGold Ashanti Ltd. and Newmont Mining Corp. of Greenwood, Colorado, have so-called stability agreements fixed at 3 percent.

South Africa is the continent’s top producer of the metal. Earlier today, Reuters cited Finance Minister Kwabena Duffuor as saying Ghana is in talks with gold miners about extra taxes, including the possibility of a windfall tax.

--Editors: Emily Bowers, Heather Langan.

To contact the reporter on this story: Ekow Dontoh in Accra at edontoh@bloomberg.net.

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net


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