Ghana is set to overhaul its gold royalty regime, aiming to boost government revenues as global gold prices rise. The country’s finance minister has proposed changes that include both a revised royalty structure and a reduction in an existing mining levy, sparking debate among mining companies and stakeholders.
At the heart of the reform is the introduction of a sliding royalty system for gold producers. Unlike the current flat rate, this system would adjust royalties based on gold price movements, specifically increasing the royalty rate by one percentage point for every $500 increase in the gold price. This approach, similar to the model used in Burkina Faso, is designed to ensure that the government captures more value during periods of high commodity prices.
According to the government’s proposal, Africa’s top gold-producing nation could see royalty rates range between 5% and 12%, depending on market conditions. The new regime is scheduled to take effect 21 days from Tuesday, unless parliament decides to amend it.
In tandem with the royalty reform, the finance minister has offered to cut the growth and sustainability levy (GSL)—an additional tax imposed on mining companies to fund long-term economic development initiatives. While industry representatives requested the complete removal of the 3% GSL, the minister instead proposed reducing it by two percentage points.
Transitioning to industry reactions, miners have expressed concern that the sliding royalty system could deter investment, particularly for higher-cost or less profitable mines. Kenneth Ashigbey, CEO of the Chamber of Mines, told Reuters, “We asked that the 3% levy be removed entirely, but the minister is offering to take off only two points.” He added that miners are advocating for a royalty range of 4%–8%, with one percentage point set aside for a development fund benefiting host communities.
The Chamber of Mines also argues for wider price bands in the royalty scheme, contending that the government’s current thresholds trigger higher rates too readily, potentially squeezing operations with thinner profit margins. Ashigbey emphasised the need for urgent dialogue: “The question is whether government wants revenue on a sustainable basis or just in the next few years before investments move elsewhere,” he said.
Parliament’s reaction remains pending, as lawmakers could still pass the royalty amendment as proposed unless the finance ministry submits an alternative. A government source confirmed openness to further discussions, though responses from host communities have been limited so far. Some mining sector regulators have noted that miners began paying higher taxes after their initial resistance to the changes failed.
