China, the United States and several Western governments are pressing Ghana to reconsider a planned increase in gold royalties that mining companies say could significantly raise operating costs in the world’s top gold-producing nation in Africa, according to industry sources and a document seen by Reuters.
Ghana, Africa’s largest gold producer, is proposing to replace its fixed 5 percent royalty on gold production with a sliding scale ranging from 5 percent to 12 percent, linked to international bullion prices. The measure is intended to allow the government to capture a larger share of mining revenues as global gold prices climb to record highs.
However, mining companies warn that the upper bands of the proposed scale could make Ghana one of the most expensive mining jurisdictions on the continent and reduce profit margins for producers.
Diplomatic missions from China and the United States have joined representatives from the United Kingdom, Canada, Australia and South Africa in raising concerns about the proposed policy change, marking an unusually coordinated diplomatic intervention in a mining fiscal reform.
According to two sources with direct knowledge of the matter, representatives from these missions recently met Ghana’s lands and natural resources minister in Accra and presented a joint document outlining their concerns about the potential impact on the mining industry.
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“The heads of missions expressed concern that the operating environment of the mines will be challenging,” one industry executive said, describing the discussions.
The diplomatic group is also seeking further consultations with Ghana’s finance ministry to discuss the proposed royalty framework.
Industry executives say the level of international diplomatic engagement is unusual for a fiscal policy change in the mining sector.
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“This is the first time I’ve seen the diplomatic community get involved at this scale,” a senior industry source said.
Major mining companies operating in Ghana have also privately voiced concerns about the proposed royalty scale. Executives from global gold producers including Newmont, Gold Fields, AngloGold Ashanti and Perseus Mining have written or delivered letters to Ghana’s lands minister in recent months urging the government to reconsider the structure of the proposed increase.
Chinese mining companies have also lodged formal objections. Firms including Zijin Mining, Chifeng Gold and Shandong Gold are among operators with interests in Ghana’s gold sector.
A letter from the Association of China–Ghana Mining warned that the proposed royalty scale could threaten the viability of several Chinese-operated mines, including Zijin’s Akyem operation, Chifeng’s Wassa mine and Shandong’s Cardinal gold project.
“The royalty issue has united companies like nothing in recent years,” the senior industry source said.
The Ghanaian government has already agreed to reduce an existing mining levy in an effort to ease industry concerns and facilitate passage of the reform, according to earlier reports. Nonetheless, mining companies argue that the proposed royalty scale remains too aggressive and have submitted alternative rate proposals to policymakers.
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Officials from Ghana’s lands and finance ministries did not immediately respond to requests for comment, while the embassies of the United States, China, the United Kingdom, Canada, Australia and South Africa in Accra also did not provide immediate responses.
The debate comes as mining companies report strong financial results amid surging gold prices. In 2025, Newmont reported earnings exceeding US$7 billion, while Gold Fields more than doubled its profits. AngloGold Ashanti tripled its profit during the year, and Perseus Mining posted earnings of US$421.7 million, representing a 16% increase from the previous year.
Gold remains a critical pillar of Ghana’s economy, accounting for a large share of export revenues and government income. Authorities say adjusting the royalty regime could help ensure the country benefits more from rising global prices while supporting fiscal stability.
Industry players, however, warn that excessive taxation could discourage investment in new mining projects and expansion of existing operations.
Negotiations between Ghanaian authorities, mining companies and diplomatic representatives are expected to continue in the coming weeks as the government weighs its next steps on the proposed royalty reform.
