Accra, Ghana – The United States, China, and several Western governments have mounted coordinated diplomatic pressure on Ghana to halt or revise a proposed increase in gold royalties that mining companies warn could raise operating costs for major producers.
The diplomatic push, revealed through sources familiar with the matter and a letter from an industry group, highlights growing international concern over Ghana’s planned overhaul of its mining royalty system.
Okay News reports that Ghana, Africa’s largest gold producer, currently applies a fixed royalty rate of up to 5 percent on gold production but plans to replace this with a sliding scale ranging between 5 percent and 12 percent depending on global bullion prices. Mining companies warn that the upper bands of the new regime could make Ghana one of Africa’s most expensive mining jurisdictions and significantly squeeze profit margins.
Diplomatic missions from the UK, Canada, Australia, and South Africa have also intervened, marking what three senior industry executives described as an unusually high-level response to a fiscal proposal. Representatives from the missions met Ghana’s lands and natural resources minister this month and presented a joint document outlining concerns, seeking further talks with the finance minister.
Global mining executives have privately pushed back, with leaders of Newmont, Gold Fields, AngloGold Ashanti, and Perseus raising concerns directly with government officials. Chinese-owned mines, including Zijin, Chifeng, and Shandong Gold, have filed formal protests, warning that the proposal could threaten the viability of their operations.
Ghana produced a record 6 million ounces of gold in 2025, with export earnings surging to about $20 billion, nearly doubling from $10.3 billion in 2024. Gold accounts for 40 percent of Ghana’s export earnings and has long been the backbone of its mining sector. Despite being a leading producer, much of the gold extracted is exported raw, with only a small portion refined domestically. This gold royalty dispute reflects the broader tension between resource-rich nations seeking greater revenue and international investors concerned about operating costs.
