Ghana is set to implement a new sliding‑scale gold royalty regime on Tuesday, linking state revenues to rising bullion prices, the head of the country’s mining regulator said. The policy comes despite opposition from China, the United States, and other Western governments, as well as concerns from top mining executives.
The move is part of a broader African effort to capture more value from surging commodity prices. Last week, Reuters reported that the United States, China, and several Western nations had launched a rare joint effort to persuade Ghana to halt the policy.
Under the new framework, Ghana’s gold miners will pay 12% royalties when gold prices reach $4,500 per ounce, replacing the previous flat 5% rate. Gold is currently trading above $5,000 per ounce. Lithium royalties will shift to a 5–12% sliding scale, tied to prices between $1,500 and $3,200 per metric ton, while all other minerals will maintain a flat 5% rate.
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Regulator Defends Policy
Isaac Tandoh, CEO of the Minerals Commission, said diplomatic missions had raised concerns about the top 12% royalty rate but did not oppose the overall policy shift.
“They met us, they are not against the review in principle,” Tandoh said. “The missions wanted the 12% rate to kick in after gold hits $5,000 per ounce, but Ghanaian authorities rejected that proposal.”
Tandoh added that modelling showed the sliding scale strikes the right balance by boosting state revenue while preserving industry margins, dismissing fears that Ghana might become uncompetitive.
“Investors care more about regulatory stability than marginal cost shifts,” he said.
Industry Concerns
The CEOs of the world’s top gold miners have opposed the sliding‑scale regime, warning it could discourage future investment. Similarly, the Ghana Chamber of Mines expressed concern.
“This will dry up new projects and output,” said Kenneth Ashigbey, CEO of the Chamber of Mines.
Despite these warnings, Ghanaian authorities have maintained that the reform is necessary to ensure the country captures more value from its mineral wealth while maintaining a stable investment environment.
