Despite concerns from the U.S., China and major mining firms, Accra says the new sliding-scale royalty system will ensure the country earns more from surging gold prices…..
The Ghana government has confirmed it will proceed with a new sliding-scale royalty regime for gold mining, brushing aside diplomatic pressure from the United States, China, and other Western governments that had urged a reconsideration of the policy.
According to a report by Reuters, the Chief Executive Officer of the Ghana Minerals Commission, Isaac Tandoh, said the country will begin implementing the new royalty framework starting Tuesday.
The policy is part of a broader strategy by the government to secure a larger share of revenue from its mineral resources at a time when global commodity prices particularly gold are surging.
Why Ghana is changing its royalty system
Regulators say the new framework is designed to align government earnings with rising commodity prices while still maintaining a reasonable return for investors.
Under the existing structure, mining companies pay a flat 5 percent royalty on gold production.
However, the new system will introduce a sliding-scale royalty, meaning the amount companies pay will increase as global gold prices rise.
Under the proposed structure:
- Gold royalties could rise to as high as 12 percent when prices reach about $4,500 per ounce
- Lithium royalties will also move to a 5–12 percent sliding scale depending on global prices
- Other minerals will continue to attract a flat 5 percent royalty
Officials say the adjustment will help the country capture more value from its natural resources during commodity booms.
Diplomatic pressure and industry concerns
The policy has triggered concern among foreign governments and major mining companies operating in Ghana.
Tandoh said diplomatic missions had engaged regulators about the policy, particularly regarding the highest royalty band under the proposed system.
“They met us; they are not against the review in principle,” he said, suggesting the discussions focused mainly on the details of the framework rather than the concept itself.
Mining industry leaders, however, remain wary of the potential impact.
The Chief Executive of the Ghana Chamber of Mines, Kenneth Ashigbey, warned that higher royalties could reduce the attractiveness of Ghana’s mining sector for new investors.
Executives from several major mining firms have also reportedly raised concerns privately.
Companies including Newmont, Gold Fields, AngloGold Ashanti, and Perseus Mining are said to have written to the country’s Ministry of Lands and Natural Resources warning that the proposed changes could raise operational costs and slow future investment in the sector.
Gold’s critical role in Ghana’s economy
Ghana remains Africa’s largest gold producer and one of the world’s leading suppliers of the precious metal.
The country produced roughly six million ounces of gold in 2025, with the sector accounting for about 40 percent of national export earnings.
The new policy comes at a time when global gold prices are experiencing a strong rally. Bullion prices have risen nearly 20 percent this year, hitting a record high of around $5,595 per ounce earlier in the year amid geopolitical tensions and concerns about monetary policy in the United States.
Push for more local value
Despite its position as a major gold producer, much of Ghana’s output has historically been exported in raw or semi-processed form.
To improve domestic value addition, the country opened its first commercial refinery, the Royal Ghana Gold Refinery in August 2024.
The refinery was developed through a public-private partnership between Rosy Royal Minerals of India and the Bank of Ghana, which holds a 20 percent stake.
Authorities believe that policies like the new royalty system, combined with local refining capacity, could help Ghana retain more economic value from its vast mineral resources while strengthening government revenues during periods of high commodity prices.
About the Author
