Ghana Moves Forward with Gold Royalty Increase Plan

Ghana is set to introduce a new sliding scale royalty framework for gold mining starting Tuesday, despite diplomatic pressure from the United States and China to reconsider the policy. Isaac Tandoh, Chief Executive Officer of the Ghana Mining Commission, stated that the government aims to capture a larger share of revenue as global gold prices surge.

The new system is designed to balance government revenue with investor returns, but industry groups have warned that it could negatively impact future investments. Kenneth Ashigbei, Chief Executive of the Ghana Chamber of Mines, expressed concerns that higher royalties could slow investment and reduce future output.

Major mining companies, including Newmont, Gold Fields, and AngloGold Ashanti, have reportedly opposed the proposed changes, warning that increased operational costs could discourage new investments. Currently, Ghana's gold royalty payment is a flat 5%, which will be replaced by the new sliding scale as part of the government's strategy to enhance revenue from the mining sector, which accounts for 40% of the country's export earnings.