US, UK, China Mount Pressure on Ghana Over Proposed Gold Royalty Increase
Diplomatic missions warn planned royalty scale could make Ghana one of Africa’s most expensive mining destinations.
- Ghana proposes replacing fixed 5% gold royalty with a sliding scale of 5–12%.
- Major mining countries including the US, UK and China have raised diplomatic concerns.
- Mining firms warn the new rate could make Ghana one of Africa’s most expensive mining jurisdictions.
Several major global powers, including the United States, United Kingdom and China, are reportedly pressuring Ghana to halt plans to increase gold royalties that could affect some of the world’s largest mining firms.
According to sources and a letter cited by Reuters, the Ghanaian government is proposing to replace the current fixed 5 percent royalty on gold production with a sliding scale ranging from 5 percent to 12 percent, depending on global gold prices.
Authorities say the move is intended to help the country capture more revenue as gold prices reach record highs. Ghana is currently Africa’s leading gold producer.
However, mining companies argue that the proposed top rates could make Ghana one of the most expensive jurisdictions for gold mining on the continent and significantly cut into industry profits.
In response to industry concerns, the government has agreed to reduce an existing levy to soften the impact of the reform. Despite this concession, companies insist the proposed royalty range remains too high and have submitted alternative lower rates for consideration.
The issue has drawn unusually strong diplomatic attention. Officials from the United States, China, United Kingdom, Canada, Australia and South Africa have reportedly intervened, raising concerns about the potential impact of the policy on mining operations.
Industry executives described the level of diplomatic engagement as unprecedented.
“This is the first time I’ve seen the diplomatic community get involved at this scale,” a senior industry source said.
Diplomatic representatives from these countries are said to have met with Ghana’s Minister for Lands and Natural Resources earlier this month, presenting a joint document outlining their concerns. They are also seeking further discussions with the Finance Minister.
According to one executive familiar with the discussions, heads of diplomatic missions warned that the proposed royalty regime could create a more challenging operating environment for mining companies in Ghana.
Major mining firms including Newmont, Gold Fields, AngloGold Ashanti and Perseus Mining have also raised concerns directly with the Lands Minister during meetings held in December and January.
Chinese mining companies have also formally protested. A letter from the Association of China–Ghana Mining warned that the proposed policy could threaten several Chinese-backed operations, including Zijin Mining’s Akyem mine, Chifeng Jilong Gold Mining’s Wassa mine, and Shandong Gold Group’s Cardinal mine.
Industry insiders say the royalty proposal has united mining companies in a rare show of collective concern.
“The royalty issue has united companies like nothing in recent years,” another senior source said.
Despite the tensions, Ghana-based gold producers recorded strong financial performances in 2025. Newmont reported earnings of more than $7 billion, Gold Fields more than doubled its profits, AngloGold Ashanti tripled its earnings, while Perseus Mining posted $421.7 million in profit, representing a 16 percent increase from the previous year.
Officials from Ghana’s Lands and Finance ministries had not immediately responded to requests for comment.
