Ghana pressured to halt gold royalty hike: Reuters

Ghana pressured to halt gold royalty hike: Reuters

Ghana faces international pressure to halt a proposed gold royalty increase that could significantly impact global mining operations. The West African nation, Africa's largest gold producer, plans to replace its fixed 5% royalty with a sliding scale tied to gold prices, ranging from 5% to 12%. This move aims to capitalize on record-high gold prices, which reached over $5,100 per ounce in early 2026. However, the reform has drawn coordinated objections from China, the U.S., and other Western governments, who argue it could destabilize mining investments and reduce profitability for major operators.

Diplomatic missions from the U.S., China, the UK, Canada, Australia, and South Africa have engaged Ghana's Lands and Natural Resources Minister, presenting joint concerns about the fiscal proposal. Mining companies, including Newmont, AngloGold Ashanti, Gold Fields, and Chinese-owned Zijin and Chifeng, have submitted counter-proposals, citing fears of reduced project viability and job losses. The Ghana Chamber of Mines warns that the new regime could threaten 2026 production targets, which rely on expansions and new projects.

To ease the transition, Ghana's finance minister has offered to reduce the growth and sustainability levy by two percentage points. However, mining groups argue the compromise is insufficient and seek a revised royalty range of 4%–8%. The proposed changes, which could take effect as early as March 2026, highlight tensions between governments seeking higher resource revenues and companies aiming to maintain operational stability in a volatile market.

Ghana's gold output hit a record 6 million ounces in 2025, driven by both large-scale and artisanal mining. The outcome of ongoing negotiations will likely influence investment flows and production trends in one of Africa's critical mining economies.