The policy, which could take effect as early as next week if it is not amended or withdrawn, is part of the government’s broader push to increase the state’s share of revenue from the country’s booming gold sector.
Earlier this year, Ghanaian authorities scrapped several long-term mining agreements and announced plans to raise royalties on gold production. The move signals a shift toward capturing more value from rising global commodity prices and tightening oversight of the country’s natural resources.
Higher royalties proposed
Under the proposed regime, the royalty rate on gold production would start at 9% and increase to as much as 12% if gold prices exceed $4,500 per ounce. This represents a significant jump from the current royalty structure, which ranges between 3% and 5%.
The reforms also include stricter local-content rules designed to increase procurement from domestic suppliers and expand support for Ghanaian companies participating in the mining value chain.
Mining firms, however, argue that the proposed rates are too high and could erode profit margins, especially for operations with higher production costs. According to industry sources cited by Reuters, companies have submitted counter-proposals calling for lower royalty bands.
Diplomatic pressure emerges
The debate around the policy has attracted international attention and, unusually, diplomatic intervention from several countries whose companies operate in Ghana’s mining sector.
Diplomatic missions from the United States, China, United Kingdom, Canada, Australia, and South Africa have reportedly raised concerns about the proposal with Ghanaian authorities.
According to three senior industry executives familiar with the discussions, diplomats cautioned that the proposed framework could create a more challenging operating environment for mining companies and potentially discourage future investment.
The British, Canadian, and Australian High Commissions, along with the U.S., South African, and Chinese embassies in Accra, have not publicly commented on the matter.
Major mining companies push back
Leading global gold producers have also privately voiced their concerns. Executives from companies including Newmont, Gold Fields, AngloGold Ashanti, and Perseus Mining reportedly raised the issue directly with Ghana’s lands minister through letters and meetings held between December and January.
Chinese mining firms operating in the country have also joined the pushback. Companies such as Zijin Mining, Chifeng Gold, and Shandong Gold are said to have submitted formal complaints through industry channels.
The companies argue that steep royalty increases could undermine investment incentives in a sector that requires large upfront capital commitments and long development timelines.
Part of a broader African trend
Ghana’s proposed reforms reflect a wider shift across Africa as governments attempt to secure a greater share of the economic benefits from their mineral resources.
Across several resource-rich countries, policymakers are reconsidering long-standing mining contracts and exploring measures such as higher royalties, increased state participation, and stricter local-content rules.
In parts of West Africa—including countries associated with the Alliance of Sahel States—discussions around stronger state control and even nationalisation of certain mining assets have gained traction.
Supporters of these policies argue that they are necessary to ensure that mineral wealth contributes more meaningfully to domestic economic development, rather than disproportionately benefiting foreign mining companies.
For governments like Ghana’s, the challenge lies in balancing these ambitions with the need to remain competitive in attracting global mining investment.