ACCRA, Mar 9 – Ghana is moving forward with a new royalty framework for gold mining that links government earnings more closely to global commodity prices, despite objections from foreign governments and mining industry leaders.
The policy, scheduled to take effect Tuesday, replaces the current flat 5% royalty rate applied to gold production in Africa’s largest gold-producing nation.
Under the new system, royalties will rise gradually as gold prices increase. According to the proposed structure, miners could pay up to 12% when prices reach $4,500 per ounce. Gold is currently trading above $5,000 per ounce, significantly higher than the threshold outlined in the framework.
The plan is part of a broader push by resource-rich African countries to capture a larger share of revenue during periods of high commodity prices.
Officials from the Minerals Commission of Ghana said several diplomatic missions, including representatives from the United States and China, had expressed concern about the highest royalty band but did not oppose the broader policy direction.
Isaac Tandoh said foreign missions suggested the 12% royalty rate should apply only when gold prices exceed $5,000 per ounce, though Ghana’s authorities ultimately decided against that adjustment.
The revised framework also introduces a similar sliding-scale structure for lithium. Royalties on lithium production will range from 5% to 12%, depending on prices between $1,500 and $3,200 per metric ton. Other minerals will continue to attract the existing flat royalty rate of 5%.
Mining industry leaders have voiced concern that the policy could discourage future investment in Ghana’s mining sector.
The Ghana Chamber of Mines warned the higher royalty levels could slow the development of new projects and reduce production over time.
Its chief executive, Kenneth Ashigbey, said the increased royalty burden could make the country less attractive to investors.
However, Tandoh defended the reforms, saying government modelling indicates the system strikes a balance between increasing public revenue and maintaining profitability for mining companies.
He added that investors typically prioritise regulatory stability and policy certainty over marginal changes in operating costs.
