China, the United States and several Western governments are pressing Ghana to reconsider a proposed increase in gold mining royalties.
Ghana, Africa’s largest gold producer, plans to replace its current fixed 5% royalty with a sliding scale ranging from 5% to 12%, depending on global gold prices.
The government says the change is aimed at increasing revenue as gold prices reach record highs.
Mining companies have warned that higher royalty rates could make Ghana one of the most expensive mining jurisdictions in Africa and reduce profit margins.
The proposed policy could take effect as early as next week if it is not amended or withdrawn.
Although Ghana has agreed to reduce an existing levy to help the reform move forward, mining firms say the proposed royalty range remains too high and have submitted alternative, lower rates.
Diplomatic missions from the United States, China, the United Kingdom, Canada, Australia and South Africa have raised concerns about the proposal.
According to industry sources, representatives from these missions met Ghana’s Minister for Lands and Natural Resources earlier this month and presented a joint document outlining their concerns.
They are also seeking further discussions with the finance minister.
One senior industry source said it was unusual to see such a high level of diplomatic involvement over a tax proposal.
Several global mining companies have also privately expressed concerns.
Executives from major firms including Newmont, Gold Fields, AngloGold Ashanti and Perseus reportedly contacted the lands minister between December and January to raise the issue.
Chinese-owned mining companies such as Zijin Mining, Chifeng Gold and Shandong Gold have also filed formal protests.
The Association of China–Ghana Mining warned that the proposed royalty changes could threaten the viability of mines operated by these companies, including Zijin’s Akyem mine, Chifeng’s Wassa mine and Shandong’s Cardinal mine.
“The royalty issue has united companies like nothing in recent years,” a senior industry source said.
The mining companies did not immediately respond to requests for comment, and Ghana’s lands and finance ministries also did not comment.
Despite the dispute, gold producers with operations linked to Ghana reported strong financial results in 2025.
Newmont earned more than $7 billion, Gold Fields more than doubled its profits, AngloGold Ashanti tripled its earnings, and Perseus reported $421.7 million in profit, a 16% increase from the previous year.
Reuters/Hauwa M.