China, the United States and several Western governments are mounting a coordinated push for Ghana to suspend a planned increase in gold royalties, arguing that the move could negatively affect some of the world’s largest mining companies.
The diplomatic pressure, described by industry sources as unusually broad, was revealed by three people familiar with the discussions and a letter from a mining industry group, as seen on Reuters.
Ghana, Africa’s largest gold producer, is seeking to replace its current fixed 5% royalty with a sliding scale ranging from 5% to 12%, linked to global bullion prices.
The proposal is part of the government’s effort to capture a larger share of revenue as gold prices reach successive historic highs.
Mining companies warn that the upper levels of the proposed royalty band could significantly raise operating costs.
They argue that the change, which could take effect as early as next week unless revised or withdrawn, would make Ghana one of the most expensive mining jurisdictions in Africa and could put pressure on profit margins.
To help ease the reform’s passage, Ghana has already agreed to reduce an existing levy, Reuters previously reported.
However, mining companies say the proposed royalty range is still too steep and have submitted alternative rates that are lower than those proposed by the government.
Diplomatic pressure has intensified in recent weeks. In addition to representatives from the United States and China, diplomatic missions from the United Kingdom, Canada, Australia and South Africa have also stepped in.
Three senior industry executives described the response as unusually high-level for a fiscal policy proposal.
“This is the first time I’ve seen the diplomatic community get involved at this scale,” a senior industry source said.
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According to two people with direct knowledge of the meeting, representatives from the various missions met Ghana’s lands and natural resources minister earlier this month and presented a joint document outlining their concerns. The group is also seeking further discussions with Ghana’s finance minister.
“The heads of missions expressed concern that the operating environment of the mines will be challenging,” one executive said.
The UK, Canadian and Australian High Commissions, along with the U.S., South African and Chinese embassies in Accra, did not immediately respond to requests for comment.
Meanwhile, top executives from major global mining companies have also privately voiced objections to the proposal.
Leaders from Newmont, Gold Fields, AngloGold Ashanti and Perseus either wrote to or personally delivered their concerns to the lands minister in December and January.
Chinese-owned mining companies have also formally protested the policy. Firms including Zijin, Chifeng and Shandong Gold submitted objections, highlighting potential impacts on their operations.
A letter from the Association of China–Ghana Mining, which was copied to China’s ambassador and reviewed by Reuters, warned that the royalty proposal could threaten the viability of several operations, including Zijin’s Akyem mine, Chifeng’s Wassa mine and Shandong’s Cardinal gold project.
“The royalty issue has united companies like nothing in recent years,” said the senior industry source.
None of the mining companies responded to requests for comment, and Ghana’s lands and finance ministries also did not immediately reply to inquiries.
The debate comes as major gold producers linked to Ghana report strong financial performance. In 2025, Newmont recorded earnings of more than $7 billion, Gold Fields more than doubled its profits, AngloGold Ashanti tripled its earnings, and Perseus reported $421.7 million in profit, representing a 16% increase year on year.
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Image Credit: Ghana Financial Market
