Ghana Gold Royalty Hike Dispute

Ghana, Africa's largest gold producer, plans to replace its fixed 5% gold royalty with a sliding scale between 5% and 12% linked to bullion prices. This move aims to increase revenue from the historically high gold prices. However, major mining companies, including Newmont, Gold Fields, AngloGold Ashanti, Perseus Mining, Zijin Mining, Chifeng Jilong Gold Mining, and Shandong Gold Group, argue that the new regime would make Ghana one of the most expensive jurisdictions for mining, squeezing their margins. In response, the United States, China, the United Kingdom, Canada, Australia, and South Africa have launched an unusually coordinated diplomatic effort to persuade Ghana to halt or amend the proposed hike, citing potential harm to the mining industry.