U.S., China mount pressure on Ghana over proposed gold royalty hike

The United States, China and several Western governments have mounted coordinated diplomatic pressure on Ghana to halt or revise a proposed increase in gold royalties that mining companies warn could raise operating costs for major producers.

According to a report by Reuters, the diplomatic push was revealed through sources familiar with the matter and a letter from an industry group, highlighting growing international concern over Ghana’s planned overhaul of its mining royalty system.

A gold royalty is a payment made by mining companies to a government as a percentage of revenue generated from mineral extraction.

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Ghana currently applies a fixed royalty rate of up to 5% on gold production, but the government plans to replace this with a sliding scale ranging between 5% and 12% depending on global bullion prices.

What they are saying

Diplomatic missions from several countries have raised concerns that the proposed royalty structure could make Ghana one of Africa’s most expensive jurisdictions for gold mining.

• “The heads of missions expressed concern that the operating environment of the mines will be challenging,” Reuters quoted an unnamed executive.

Mining companies have also pushed back against the proposal, with top executives from major global producers privately raising concerns with Ghana’s lands and natural resources ministry.

Leaders from companies including Newmont, Gold Fields, AngloGold Ashanti and Perseus have reportedly written to government officials warning about the potential impact of the proposed policy.

Get up to speed

Gold prices have surged significantly this year, climbing by nearly 20% and reaching a record high of about $5,595 per ounce in late January, driven largely by geopolitical tensions and concerns over the independence of the U.S. Federal Reserve.

• Ghana’s proposed policy seeks to ensure the country captures more of the windfall from these high prices.
• Under the planned regime, royalty payments would increase as gold prices rise, reaching as high as 12% when bullion trades above certain thresholds, compared with the current maximum rate of about 5%.
• The sliding-scale framework is designed to allow the state to earn more during commodity booms while maintaining flexibility when prices decline. However, mining companies argue that the proposed upper bands remain too high and could affect investment decisions.

Meanwhile, in Nigeria, the Central Bank of Nigeria (CBN) recently added responsibly sourced gold to its foreign reserves, raising its gold holdings to about $3.5 billion.

What you should know

Ghana is Africa’s largest gold producer and one of the top producers globally, with annual output reaching about 6 million ounces in 2025.

Gold plays a central role in the country’s economy. The metal accounts for 40 percent share of Ghana’s export earnings and has long been the backbone of its mining sector.

Major multinational companies including Newmont, AngloGold Ashanti, Gold Fields and Perseus operate large-scale mines in the country.

• Despite being a leading producer, much of the gold extracted in Ghana is exported in raw or semi-processed form, with only a small portion refined domestically.
• In August 2024, the West African country opened its first commercial gold refinery, the Royal Ghana Gold Refinery which was a public-private partnership between Rosy Royal Minerals of India and Ghana’s central bank, with the bank holds a 20% stake

Officials argue that the reforms will allow Ghana to benefit more from surging commodity prices while maintaining a competitive mining sector. However, industry groups warn that overly aggressive fiscal changes could discourage new investment and raise costs for existing operations.

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