Country Profile

• Formerly called the Gold Coast.
• Independent constitutional democracy.
• Multi-party democracy restored since 1992.
• Population of 25.9 million with a land area of 239,000 km².
• English Common & Customary Law in use.
• Competitive fiscal policy and incentives for mining and mineral exploration.
• 2.5 million ounces of gold produced annually, representing 42% of exports.
• Mining friendly jurisdiction.
• Numerous large scale and smaller alluvial gold production.
• Ranked as fastest reforming economy in Africa.

Fiscal Regime Related to the Mining Industry

All mineral resources are managed for the Government of Ghana by the Minerals Commission. A new 2006 Act (Act 703) governing fiscal issues in Ghana with the main highlights as follows:

• 25% corporate income tax with no additional profits tax.
• 8% withholding tax on dividends.
• Capital allowances of 75% for the first year and 50% of balance for the following years.
• From 3% to 6% royalty paid to the Government of Ghana on all gold and diamonds produced.
• 10% free carried equity stake held by the Government of Ghana for no consideration and no right of the Government to purchase additional equity.
• Stability agreements entered into for periods of up to 15 years to protect the company from future changes in law that might impose a large financial burden on the company. Must be approved by Parliament.
• Exemptions on import duties and taxes for mining plant and equipment.
• Up to 75% retention of proceeds from sales of minerals in foreign currencies.