"Government officials argue that the previous fixed-rate cost Ghana billions in potential revenue and stalled investment in infrastructure, schools, hospitals, and community development. According to them, the new structure is expected to increase state revenues when mining firms are more profitable, while reducing government income when market prices are lower."
"Kenneth Ashigbey, CEO of the Ghana Chamber of Mines, warns that higher royalties could push investment away from Ghana. 'Investments, whether they are local or foreign, are rational. So, where they would get their best returns for their investments is where they are going to go,' Ashigbey told DW."
"However, critics argue that the abrupt jump could cause unintended consequences for the sector and investor confidence, including potential delays or reductions in future mining investments."
Ghana's government implemented sweeping mining policy reforms in response to gold prices exceeding $5,000 per ounce. The country replaced its decade-long flat 5% royalty with a sliding-scale system ranging from 5% to 12%, tied to international gold prices. At current record prices above $4,500 per ounce, Ghana applies the maximum 12% rate. Officials contend the previous fixed rate cost billions in potential revenue and hindered infrastructure investment. The new structure aims to increase state revenues during profitable periods while reducing income during market downturns. However, critics warn the abrupt increase may deter future mining investments and harm investor confidence. Major mining companies including Newmont, Gold Fields, and AngloGold Ashanti oppose the higher rates, citing competitiveness concerns. Ghana earned nearly $21 billion in gold exports in 2025, yet opposition parties worry about employment impacts.
Read at www.dw.com
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