US, China lead coordinated diplomatic push to block Ghana’s proposed gold royalty hike

In an unusually unified front, the United States, China, and several Western governments have intervened to pressure Ghana into abandoning a proposed hike in gold royalties, warning the move could threaten the viability of operations owned by some of the world’s largest mining companies, according to three sources familiar with the discussions and an industry letter reviewed by Reuters.

Africa’s leading gold producer is seeking to replace its current flat royalty rate of 5% with a progressive scale ranging from 5% to 12%, pegged to international bullion prices. The reform is intended to capture a greater share of revenue from gold’s surge to successive record highs.

However, industry executives warn that the upper bands of the proposed royalty regime—which could take effect as early as next week unless amended or withdrawn—would make Ghana one of the most expensive mining jurisdictions on the continent and significantly compress profit margins.

Ghana has already agreed to reduce an existing levy in an effort to ease the reform’s passage, Reuters has previously reported. But mining companies argue the proposed scale remains too steep and have submitted counterproposals with lower rates.

Diplomatic Pushback

Beyond the U.S. and China, diplomatic missions from the United Kingdom, Canada, Australia, and South Africa have also raised concerns, marking what three senior industry executives described as an unprecedented level of diplomatic engagement over a fiscal measure.

“This is the first time I’ve seen the diplomatic community get involved at this scale,” one senior industry source said.

Representatives from the missions met with Ghana’s lands and natural resources minister this month and presented a joint document outlining their concerns, two people with direct knowledge of the meeting said. The group is now seeking further discussions with the finance minister.

“The heads of missions expressed concern that the operating environment of the mines will be challenging,” one executive said, speaking on condition of anonymity due to the sensitivity of the issue.

The UK, Canadian, and Australian High Commissions, as well as the U.S., South African, and Chinese embassies in Accra, did not immediately respond to requests for comment.

Mining CEOs Voice Alarm

CEOs of major global miners have also privately pushed back. Leaders of Newmont, Gold Fields, AngloGold Ashanti, and Perseus wrote or delivered direct appeals to the lands minister in December and January.

Chinese-owned mines—including those operated by Zijin Mining, Chifeng, and Shandong Gold—have filed formal protests. A letter from the Association of China–Ghana Mining, copied to Beijing’s ambassador and seen by Reuters, warned that the proposal could threaten the viability of Zijin’s Akyem mine, Chifeng’s Wassa operation, and Shandong Gold’s Cardinal project.

“The royalty issue has united companies like nothing in recent years,” the senior industry source said.

The mining companies did not respond to requests for comment. Ghana’s lands and finance ministries also did not immediately respond.

The pushback comes despite strong financial results from Ghana-linked producers. Newmont reported over $7 billion in earnings, Gold Fields more than doubled profit, AngloGold Ashanti tripled earnings, and Perseus posted $421.7 million, up 16% year-on-year.