Ghana is being pressured to stop a planned increase in gold royalties that could hurt some of the world’s largest mining companies, according to three sources and a letter seen by Reuters.
Ghana, Africa’s top gold producer, wants to replace its fixed 5% royalty with a sliding scale from 5% to 12%, linked to gold prices. The government says this will help capture more revenue as gold hits record highs.
Mining companies warn the top rates could make Ghana one of the most expensive places to mine in Africa and squeeze profits. Ghana has agreed to lower an existing levy to ease the reform, but companies say the proposed scale is still too high and have submitted lower alternative rates.
The U.S., China, the UK, Canada, Australia, and South Africa have all intervened, a level of diplomatic engagement described as unusual by senior industry executives.
“This is the first time I’ve seen the diplomatic community get involved at this scale,” one source said.
Officials from these missions met Ghana’s Lands and Natural Resources Minister this month and shared a joint document raising concerns, two people familiar with the meeting said. They are seeking further talks with the Finance Minister.
“The heads of missions expressed concern that the operating environment of the mines will be challenging,” one executive added.
The embassies of the UK, Canada, Australia, the U.S., South Africa, and China in Accra did not immediately respond to requests for comment.
Top executives from Newmont, Gold Fields, AngloGold Ashanti, and Perseus also raised their concerns directly with Ghana’s Lands Minister in December and January.
Chinese-owned mines, including Zijin, Chifeng, and Shandong Gold, have formally protested. A letter from the Association of China–Ghana Mining, seen by Reuters and copied to Beijing’s ambassador, warned the royalty plan could threaten Zijin’s Akyem, Chifeng’s Wassa, and Shandong’s Cardinal gold mines.
“The royalty issue has united companies like nothing in recent years,” the senior source said.
Mining companies have not responded to requests for comment. Ghana’s Lands and Finance Ministries also did not respond immediately.
Ghana-based gold producers posted strong results in 2025. Newmont earned over $7 billion, Gold Fields more than doubled profits, AngloGold Ashanti tripled earnings, and Perseus made $421.7 million, up 16 percent from the previous year.
SOURCE: CITI NEWSROOM
