Ghana will move forward on Tuesday with a new sliding-scale gold royalty system that links government revenue to rising bullion prices, according to the head of the country’s mining regulator, despite opposition from the United States, China and several Western governments, as well as concerns from mining executives.
Reuters reported last week that the United States, China and other Western governments made a rare joint attempt to persuade Ghana to pause the policy.
The move is part of a broader effort by African governments to capture more value from rising global commodity prices.
The new policy replaces the flat 5% royalty currently paid by miners in Africa’s top gold-producing country. Under the new sliding-scale structure, gold miners will pay up to 12% when gold reaches $4,500 per ounce, according to a framework reviewed by Reuters. Gold prices are currently trading above $5,000 per ounce.
Royalties on lithium will also move to a sliding scale of 5% to 12%, linked to prices ranging from $1,500 to $3,200 per metric ton, while royalties for all other minerals will remain at a flat 5%.
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Isaac Tandoh, chief executive officer of the Minerals Commission, said diplomatic missions raised concerns about the top 12% royalty rate but did not oppose the broader policy change. “They met us, they are not against the review in principle,” he said over the weekend.
According to Tandoh, the missions proposed that the 12% royalty rate should only apply after gold prices reach $5,000 per ounce, but Ghanaian authorities rejected that suggestion.
Executives from some of the world’s largest gold mining companies have also opposed the planned sliding-scale regime, warning it could reduce future investment in the country.
The Ghana Chamber of Mines expressed similar concerns. Its chief executive officer, Kenneth Ashigbey, told Reuters on Sunday that the policy would “dry up new projects and output.”
Tandoh, however, said government modelling showed the sliding-scale approach achieves the right balance by increasing state revenue while maintaining reasonable margins for mining companies.
He also dismissed concerns that the policy could make Ghana less competitive, arguing that investors place greater importance on regulatory stability than on small changes in operating costs.
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