Ghana’s finance minister has increased cutting a mining levy by two percentage points in an effort to secure industry support for a planned overhaul of the country’s gold royalty system, a move mining companies warn could dampen investment if left unchanged.
Under the proposal, Ghana—Africa’s largest gold producer—would replace its current flat royalty rate with a sliding scale ranging from 5% to 12%, allowing the government to collect more revenue as global gold prices rise.
The model, inspired by a similar framework in Burkina Faso, would increase royalty payments by roughly one percentage point for every $500 rise in the gold price.
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If approved by parliament, the new regime is expected to take effect 21 days from Tuesday, according to Reuters.
The reforms come as Ghana repositions its mining sector amid soaring gold prices, having already scrapped several long-term mining agreements and raised royalties to capture a greater share of commodity windfalls.
Mining firms, however, are pushing back. Kenneth Ashigbey, chief executive of the Ghana Chamber of Mines, said Finance Minister Cassiel Ato Forson offered to reduce the Growth and Sustainability Levy during recent talks with industry players, though miners had requested its complete removal.
The levy was doubled to 3% last year, prompting temporary resistance from companies before payments resumed during negotiations.
Beyond the levy, miners are calling for a narrower royalty band of 4% to 8%, with part of the proceeds directed toward community development.
They are also seeking wider price thresholds, arguing that the current structure triggers higher royalties too quickly and could strain higher-cost or marginal operations.
Ghana’s approach mirrors a broader trend across Africa, where governments are tightening control over strategic mineral resources to maximise returns amid elevated global commodity prices.
