US, UK, China Lead Diplomatic Push Against Ghana’s Proposed Gold Royalty Increase

Ghana is facing mounting diplomatic pressure from several major economies to halt its planned increase in gold royalties, a move that mining companies warn could significantly raise the cost of operating in the country.

According to sources and a letter reviewed by Reuters, the government intends to replace the current fixed 5% royalty with a sliding scale ranging from 5% to 12%, depending on global gold prices. Authorities argue the reform is necessary to enable the country Africa’s leading gold producer to capture greater revenue at a time when gold prices are reaching record highs.

However, mining companies say the proposed top rate could make Ghana one of the most expensive destinations for gold mining on the continent and erode profit margins. Although the government has agreed to reduce an existing levy to cushion the impact, industry players maintain that the new royalty structure remains too high and have submitted alternative proposals with lower rates.

Diplomatic representatives from the United States, the United Kingdom, China, Canada, Australia, and South Africa have all raised concerns over the proposal an unusual level of international engagement, according to industry insiders.

“This is the first time I’ve seen the diplomatic community get involved at this scale,” one senior source told Reuters.

Sources familiar with the matter say officials from these missions recently met with Ghana’s Lands and Natural Resources Minister and presented a joint document highlighting their concerns. They are also seeking further discussions with the Finance Minister.

One industry executive said the envoys warned that the revised royalty framework could make the operating environment for mining companies increasingly difficult.

Major mining firms including Newmont, Gold Fields, AngloGold Ashanti, and Perseus Mining are also said to have raised their concerns directly with Ghana’s Lands Minister during meetings held in December and January.

Chinese mining interests have similarly voiced objections. A letter from the Association of China–Ghana Mining warned that the proposed royalty system could threaten the operations of companies such as Zijin Mining, Chifeng Gold, and Shandong Gold, which operate key gold mines in the country.

“The royalty issue has united companies like nothing in recent years,” a senior source said.

Neither the mining companies nor Ghana’s Lands and Finance ministries immediately responded to requests for comment.

Despite the ongoing dispute, gold producers operating in Ghana recorded strong financial results in 2025. Newmont reported earnings exceeding $7 billion, while Gold Fields more than doubled its profits. AngloGold Ashanti tripled its earnings, and Perseus Mining posted profits of $421.7 million, representing a 16% increase from the previous year.

Source: Reuters