Ghana will proceed on Tuesday with a new sliding-scale royalty regime for gold, linking government revenues to rising bullion prices, despite opposition from major mining companies and diplomatic pressure from several foreign governments, the country’s mining regulator has said.
The new policy replaces the current flat five-percent royalty for gold miners in Africa’s largest gold producer and introduces a system in which royalties increase as international gold prices rise.
Under the framework, miners will pay royalties of up to 12 percent when gold reaches 4,500 dollars per ounce. Bullion prices are currently trading above 5,000 dollars per ounce, according to market data.
Authorities say the reform is part of a broader effort by African resource-rich nations to secure a greater share of profits from soaring commodity prices.
Isaac Tandoh, chief executive of Ghana’s Minerals Commission, said the government had received concerns from several diplomatic missions, but insisted that the reform still enjoys broad support.
“They met us and they are not against the review in principle,” Tandoh told Reuters over the weekend, referring to discussions with foreign representatives.
According to him, diplomats mainly raised concerns about the threshold at which the highest royalty band would apply. Some governments proposed that the 12-percent rate should only take effect when gold prices reach 5,000 dollars per ounce rather than the 4,500-dollar level set by Ghanaian authorities.
Ghana rejected the proposal after reviewing its revenue projections and industry margins, he said.
The new framework will also introduce a price-linked royalty system for lithium, a mineral that has become increasingly valuable due to rising global demand for electric vehicle batteries.
Lithium royalties will move to a sliding scale of between five and 12 percent depending on prices, with the highest rate applying when lithium reaches 3,200 dollars per metric ton.
Royalties on other minerals will remain unchanged at a flat five percent.
The policy shift comes at a time when governments across Africa are reviewing mining contracts and tax regimes in response to surging global commodity prices and growing fiscal pressures.
Officials say the changes will allow Ghana to capture more value from its natural resources while maintaining a competitive environment for investors.
However, mining executives have warned that the higher royalties could discourage investment in new projects.
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Chief executives of several major global mining firms have voiced concerns that the sliding-scale regime could increase operating costs and reduce incentives to expand production in the country.
The Ghana Chamber of Mines has also cautioned that the policy may affect long-term investment decisions.
Kenneth Ashigbey, chief executive of the industry group, said the proposed royalties could reduce the attractiveness of Ghana as a destination for new mining projects.
“It will dry up new projects and output,” he told Reuters.
Industry players argue that the mining sector already faces rising costs linked to energy, equipment and environmental compliance.
But Ghanaian authorities say their economic modelling shows the new regime still leaves sufficient margins for mining companies while allowing the state to benefit more from high prices.
Tandoh dismissed suggestions that Ghana risks becoming less competitive compared with other mining jurisdictions.
Investors, he argued, tend to prioritise regulatory certainty over small changes in tax rates.
“Mining investors are more interested in stability and predictability,” he said.
Ghana has long relied on gold exports as a key source of foreign exchange and government revenue.
The country produced more than four million ounces of gold in recent years and remains one of the world’s leading producers.
Officials say the sliding-scale system will help ensure that the state’s earnings rise during periods of strong commodity prices while still supporting continued investment in the sector.
