ACCRA, Jan 16 – Ghana is set to scrap long term mining investment stability agreements and significantly raise royalty rates under a broad overhaul aimed at capturing more value from soaring gold prices, according to the country’s mining regulator.
The reforms, which are expected to be written into law, would end stability and development agreements that have historically locked in tax and royalty terms for major miners for periods of up to 15 years. Ghana is Africa’s largest gold producer and the world’s sixth biggest overall.
Isaac Tandoh, acting chief executive officer of the Minerals Commission, said the changes are designed to rebalance investor confidence with the government’s push to secure greater fiscal benefits from mining at a time of elevated bullion prices.
Under a draft bill expected to be submitted to parliament by March, royalties would start at 9% and rise to as much as 12% if gold prices reach $4,500 per ounce or higher. That compares with the current royalty range of 3% to 5%. Spot gold is trading around $4,590 an ounce.
Tandoh said Newmont’s stability agreement, which expired in December, will not be renewed, while similar arrangements held by AngloGold Ashanti and Gold Fields will be phased out when they lapse in 2027. Renewal of stability agreements will no longer be automatic and will be subject to strict conditions, he said.
Stability agreements in Ghana typically required mining companies to commit between $300 million and $500 million for mine construction or expansion, extend mine life by at least three years, and increase output by more than 10% to qualify for renewal.
Development agreements will be scrapped entirely, Tandoh said, citing abuses of the framework. He accused some firms of using revenues generated in Ghana to acquire assets elsewhere while failing to meet basic domestic obligations, including payments to local authorities.
The proposed reforms also include tougher local content requirements aimed at boosting in country procurement and increasing support for Ghanaian businesses.
Ghana introduced stability agreements in the early 2000s to attract foreign capital, a policy that helped unlock billions of dollars in investment and enabled the country to overtake South Africa as the continent’s top gold producer. The latest shift mirrors a broader trend across Africa, where governments are tightening mining rules to secure a larger share of windfall commodity revenues.
