Ghana is set to implement a new sliding-scale royalty system for its gold sector on Tuesday, a move aimed at increasing government revenue from the country’s mineral resources despite opposition from major global powers and some mining companies.
Under the new framework, royalties paid by mining companies will be linked to the global price of gold. The policy replaces the long-standing flat royalty rate of 5 percent for gold production.
With the new system, mining companies could pay as much as 12 percent in royalties when gold prices reach $4,500 per ounce. Gold is currently trading above $5,000 per ounce, according to Reuters.
The change is expected to significantly boost Ghana’s earnings from the mining sector, as the country remains Africa’s leading gold producer.
However, the policy has faced resistance from some foreign governments and industry players. The United States, China, and several Western nations reportedly mounted a rare joint diplomatic effort last week to persuade Ghana to suspend or reconsider the new royalty structure.
Mining executives have also raised concerns that the higher royalty rate could make Ghana one of the most expensive destinations for mining investment on the African continent.
Beyond gold, the new policy will also affect lithium mining. Royalties on lithium will operate under a similar sliding-scale system ranging from 5 percent to 12 percent, depending on market prices between $1,500 and $3,200 per metric ton. Other minerals will continue to attract a flat royalty rate of 5 percent.
Ghana’s decision forms part of a broader shift across Africa, where governments are seeking to capture a larger share of revenues from their natural resources amid rising global commodity prices.
Across parts of West Africa, discussions around tightening fiscal terms for mining companies, increasing state participation, and in some cases nationalising key assets have intensified as governments aim to maximise the benefits of their mineral wealth.
