The government of Ghana is pushing forward with a new gold royalty regime designed to increase state revenue from the country’s booming mining sector, even as foreign governments and mining companies voice concerns.
Under the new policy, authorities will replace the current flat five percent royalty on gold production with a sliding scale tied to international prices. The rate could rise as high as twelve percent when gold prices reach around 4,500 dollars per ounce. With gold already trading above 5,000 dollars per ounce on global markets, the change could significantly boost government revenue.
Officials say the reform reflects a broader push by African governments to capture more value from natural resources as commodity prices climb. Ghana is Africa’s largest gold producer and one of the world’s major exporters of the metal.
The new framework will also apply to lithium royalties, which will operate on a similar sliding scale between five and twelve percent depending on market prices. Other minerals will remain subject to the existing five percent rate.
Mining companies and some diplomatic missions have expressed concern that the policy could make Ghana a more expensive place to operate, potentially discouraging future investment. However Ghana’s Minerals Commission says economic modelling shows the system will strengthen national revenue without threatening industry profitability.
Authorities argue that long term regulatory stability is more important to investors than small increases in royalty rates.
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