Ghana will proceed with a new sliding-scale royalty regime for gold mining despite diplomatic pressure from the United States, China and other Western governments urging it to reconsider the policy.
Reuters reported that Isaac Tandoh, chief executive officer of the Ghana Minerals Commission, said the country would proceed with the new royalty framework starting Tuesday.
The government plans to introduce the policy as part of efforts to capture a larger share of revenue from rising commodity prices, particularly as global gold prices surge.
What they are saying
Regulators say the new system is designed to balance government revenue with investor returns, while mining companies and industry groups warn it could hurt future investment.
- Tandoh said foreign diplomatic missions had expressed concerns about the top royalty band under the new system, but did not oppose the broader plan to review the royalty framework.“They met us, they are not against the review in principle,” Tandoh said.
However, executives from major mining companies have warned that the policy could discourage new projects.
The Ghana Chamber of Mines also raised concerns about the proposal, with its chief executive, Kenneth Ashigbey, warning that higher royalties could slow investment and reduce future output.
Backstory
On March 6, Nairametrics reported that the United States, China and several Western governments had launched coordinated diplomatic efforts to persuade Ghana to halt or modify the proposed royalty increase.
- “The heads of missions expressed concern that the operating environment of the mines will be challenging,” Reuters quoted an unnamed industry executive as saying.
Mining companies have also privately raised objections to the plan.
Executives from major producers, including Newmont, Gold Fields, AngloGold Ashanti and Perseus Mining, have reportedly written to Ghana’s lands and natural resources ministry warning that the proposed changes could increase operating costs and discourage new investments.
What you should know
A gold royalty is a payment mining companies make to a government for the right to extract minerals from the country’s natural resources.
Under Ghana’s new system, the current flat 5% royalty will be replaced with a sliding scale that increases as commodity prices rise.
- The proposed framework will see gold miners pay up to 12% royalty when prices reach around $4,500 per ounce, while lithium royalties will also shift to a 5–12% sliding scale depending on global prices. Other minerals will continue to attract a flat 5% royalty rate.
- The policy comes amid a major surge in gold prices this year. Global bullion prices have climbed nearly 20%, reaching a record high of about $5,595 per ounce earlier in the year, driven by geopolitical tensions and concerns over the independence of the U.S. Federal Reserve.
- Ghana is Africa’s largest gold producer and among the world’s leading suppliers, producing roughly 6 million ounces of gold in 2025.
Gold plays a crucial role in the country’s economy, accounting for about 40% of export earnings and forming the backbone of its mining sector.
Despite its significant output, much of Ghana’s gold is exported in raw or semi-processed form.
To strengthen domestic value addition, the country opened its first commercial refinery, the Royal Ghana Gold Refinery, in August 2024 through a public-private partnership between Rosy Royal Minerals of India and Ghana’s central bank, which holds a 20% stake.
