Ghana defies international pressure, set to implement new gold royalty regime

Ghana will proceed with the implementation of a new, contentious gold royalty system on Tuesday, the head of the country’s mining regulator has confirmed, pushing ahead despite opposition from foreign governments and major mining firms.

The new policy introduces a sliding-scale royalty for gold, replacing the long-standing flat rate of 5%. Under the new regime, the government’s take will increase significantly when bullion prices are high, rising to as much as 12% once the price of gold reaches $4,500 per ounce. With gold currently trading above $5,000 per ounce, miners would immediately be subject to the top rate.

Isaac Tandoh, Chief Executive Officer of the Minerals Commission, told Reuters that while diplomatic missions from the United States, China, and several Western nations had raised objections, their concerns were narrowly focused on the upper limit of the new tax.

“They met us, they are not against the review in principle,” Tandoh said over the weekend. According to Tandoh, the foreign missions proposed that the 12% rate should only be triggered once gold hits $5,000 per ounce, a suggestion that Ghanaian authorities rejected.

The move is part of a broader trend across Africa, where resource-rich nations are seeking to capture a larger share of revenues from their natural assets amid a prolonged surge in global commodity prices. Last week, Reuters reported on the rare joint diplomatic effort to persuade Ghana to halt or amend the policy.

The policy shift has also drawn sharp criticism from the global mining industry. Executives from top gold producers have warned that the unpredictable tax burden will deter future investment in what is already a high-risk sector. The Ghana Chamber of Mines echoed these concerns, with its CEO, Kenneth Ashigbey, warning that the new levy would “dry up new projects and output.”

However, Tandoh dismissed these fears, stating that the Minerals Commission’s own modelling shows the sliding scale strikes a balance between maximizing state revenue and preserving industry profitability. He argued that investors prioritize a stable and predictable regulatory environment over marginal changes in operational costs.

In addition to gold, the new law will also introduce a sliding scale of 5-12% for lithium royalties, tied to prices ranging between $1,500 and $3,200 per metric ton. Royalty rates for all other minerals will remain at a flat 5%.