Ghana’s finance minister has proposed trimming a mining levy by two percentage points in an effort to secure industry support for planned reforms to the country’s gold royalty regime, a move mining firms warn could dampen investment.
Africa’s leading gold producer is seeking to replace its fixed royalty rate with a variable system ranging from 5% to 12%, enabling the state to collect a larger share of revenue when gold prices rise.
Under the proposal, which draws on a model used in Burkina Faso, royalty payments would increase by roughly one percentage point for every $500 gain in the gold price.
The new framework is expected to take effect 21 days from Tuesday unless lawmakers intervene, Reuters reported.
The changes come as Ghana restructures its mining sector against the backdrop of soaring global gold prices. Authorities have cancelled several long-term mining agreements and increased royalties on output, signalling a broader push to capture more of the windfall from commodity exports.
Industry resistance
Mining companies have called for more moderate rates. Kenneth Ashigbey, chief executive of the Ghana Chamber of Mines, said Finance Minister Cassiel Ato Forson had offered to lower the Growth and Sustainability Levy during talks with industry players.
“We requested that the 3% levy be scrapped entirely, but the minister has proposed cutting it by two percentage points,” Ashigbey said.
The levy was raised to 3% last year. Mining firms initially withheld payments before later complying as discussions with government continued, according to the regulator.
On the royalty proposal, Ashigbey said miners favour a tighter sliding scale of between 4% and 8%, with one percentage point allocated to a development fund for mining communities.
He added that the industry is also pushing for broader price bands, arguing that the government’s current structure accelerates royalty increases too quickly and could pressure high-cost or marginal mines.
Ghana’s stance mirrors a wider shift across Africa, where governments are tightening control over key mineral resources to maximise returns amid elevated commodity prices.