U.S., China Pressure Ghana Over Proposed Gold Royalty Increase

The United States, China, and several Western governments are applying diplomatic pressure on Ghana to reconsider a planned increase in gold royalties, which mining companies say could significantly raise operating costs for major producers.

Sources familiar with the matter and a letter from an industry group, reported by Reuters, revealed the international concern over Ghana’s proposed overhaul of its gold royalty system. Currently, Ghana applies a fixed royalty rate of up to 5% on gold production, but the government plans to introduce a sliding scale ranging from 5% to 12%, depending on global bullion prices.

Diplomatic missions have warned that the proposed changes could make Ghana one of the costliest jurisdictions in Africa for gold mining. Executives from global mining firms—including Newmont, Gold Fields, AngloGold Ashanti, and Perseus—have also voiced concerns to Ghana’s Ministry of Lands and Natural Resources, highlighting potential challenges for operations and investment.

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Gold prices have surged nearly 20% this year, hitting a record high of around $5,595 per ounce in late January due to geopolitical tensions and concerns over U.S. Federal Reserve policies. Ghana’s new royalty framework aims to ensure the country captures a larger share of revenue during such price surges, with payments increasing when gold prices rise. While the sliding scale is intended to balance state revenue with industry flexibility, mining companies argue that the proposed upper limits could discourage investment.

Ghana is Africa’s largest gold producer and among the top producers globally, generating about 6 million ounces in 2025. Gold accounts for roughly 40% of the nation’s export earnings and remains central to the economy. While most gold is exported in raw or semi-processed form, Ghana opened its first commercial refinery, the Royal Ghana Gold Refinery, in August 2024—a public-private partnership in which the central bank holds a 20% stake.

Officials contend that the royalty reforms will allow Ghana to benefit from rising commodity prices while maintaining a competitive mining sector. However, industry representatives caution that aggressive fiscal changes could increase costs for existing operations and deter future investment.