Latest News

Documents say that China and the US pressurize Ghana to stop gold royalty increases

According to three sources who are familiar with the issue and a letter by an industry group, China, the U.S., and other Western governments have launched an unusually coordinated effort to convince Ghana to stop a gold royalty hike that they claim could hurt some of the world's largest miners.

Africa's biggest gold producer is looking to replace its fixed royalty of 5% with a sliding rate between 5% and 12 % linked to gold prices. This is part of a bid to increase revenue as gold reaches successive historical highs.

The upper bands in the new regime could come into effect as early as next Monday if they are not amended or withdrawn. This would make Ghana the most expensive country on the continent and squeeze margins.

Ghana has agreed that it will reduce an existing levied to help pass the reform. However, mining companies have said that the proposed scale is too aggressive, and they have therefore submitted counter-rates.

DIPLOMATIC SUBSTANCE

Along with the U.S., and Chinese, diplomatic missions from UK, Canada and Australia, as well as South?Africa, have intervened. This is what three senior executives in the industry described an unusually high level response to a tax proposal.

A senior industry source stated, "This is the first time that I have seen the diplomatic community involved on this scale."

Two people who were present at the meeting confirmed that representatives from the missions had met Ghana's Minister of Lands and Natural Resources this month. They presented a document highlighting their concerns. The group wants to continue discussions with the finance ministry.

One executive stated that "the heads of missions expressed their concern about the challenging operating environment for the mines." The sensitivity of this issue led to all the sources requesting anonymity.

The UK, Canadian, Australian High Commissions, and the U.S. South African, and Chinese embassies did not immediately respond when asked for comment.

MINING CEOS VOICE CONCERNS

The CEOs of global mining companies have also privately protested. Newmont, AngloGold Ashanti, Gold 'Fields and Perseus leaders wrote to or spoke directly with the Lands Minister in December and January.

Chinese mines including Zijin Gold, Chifeng Gold and Shandong Gold have lodged formal protests.

The Association of China-Ghana Mining sent a letter to Beijing's Ambassador warning that the proposal could threaten the viability of Zijin’s Akyem and Chifeng’s Wassa gold mines.

The senior industry source said, "The issue of royalty has united companies in recent years like nothing else."

Requests for comments from the mining companies were not immediately answered. Ghana's finance and lands ministries did not respond immediately to comments.

Ghana-linked producers posted strong results for 2025. Newmont earned over $7?billion. Gold Fields doubled profits, AngloGold Ashanti tripled them, and Perseus made $421.7 million, an increase of 16% on the previous year. Maxwell Akalaare Adombila, Veronica Brown and Rob Corey-Boulet edited the story.

(source: Reuters)