Ghana Implements New Gold Royalty Regime

Ghana has proceeded with the implementation of a new sliding-scale gold royalty regime, replacing its previous flat 5% rate with a price-linked scale that can rise to 12% when gold trades at $4,500 per ounce. Gold is currently above $5,000 per ounce, placing mines immediately in the upper bands. This decision was made despite a rare joint diplomatic push by the United States, China, the United Kingdom, Canada, Australia, and South Africa, who expressed concerns about the policy's impact. Major mining companies like Newmont, Gold Fields, AngloGold Ashanti, and Perseus Mining, along with Chinese-owned mines such as Zijin Mining, Chifeng Jilong Gold Mining, and Shandong Gold Group, also protested the changes, warning of threats to viability and competitiveness. The Ghana Chamber of Mines warned of reduced new projects and output, proposing a narrower 4-8% scale. However, Isaac Tandoh, CEO of Ghana's Minerals Commission, stated the government's modeling showed preserved profitability and boosted state revenues. The policy also introduces a sliding-scale royalty for lithium, while other minerals retain a 5% flat rate. This move aligns Ghana with a broader African trend of renegotiating mining terms to gain more value from high commodity prices.