Regulator says policy has support despite diplomatic pushback
Gold miners warn new regime may deter future investment
African governments seeking more value from surging commodity prices.
By Maxwell Akalaare Adombila
DAKAR, March 9 (Reuters) - Ghana will press ahead on Tuesday with a new sliding‑scale gold royalty regime that links state revenues to rising bullion prices, the head of the mining regulator has told Reuters, despite opposition from China, the U.S. and other Western governments as well as mining executives.
Reuters reported last week that the United States, China and several other Western governments had mounted a rare joint effort to persuade Ghana to halt the policy – part of a wider push by African governments to capture more value from surging commodity prices.
The new royalty regime replaces the flat 5% rate for Africa’s top gold producer. Under the sliding-scale system, gold miners will pay 12% when gold hits $4,500 per an ounce, according to a framework reviewed by Reuters. Gold is currently trading above $5,000 per ounce.
Lithium royalties will also shift to a 5–12% sliding scale tied to prices between $1,500 and $3,200 per metric ton, while all other minerals keep a flat 5% rate.
REGULATOR SAYS POLICY HAS SUPPORT
Isaac Tandoh, CEO of the Minerals Commission, said diplomatic missions had raised concerns about the top 12% royalty rate but had not opposed the broader policy shift.
“They met us, they are not against the review in principle,” he said over the weekend. The missions wanted the 12% rate to kick in after gold hits $5,000 per ounce, but Ghanaian authorities rejected that proposal, he said.
CEOs of the world’s top gold miners have also opposed Ghana’s planned sliding‑scale royalty regime, warning it will choke future investment.
The Ghana Chamber of Mines has raised similar concerns, with CEO Kenneth Ashigbey telling Reuters on Sunday it would "dry up new projects and output."
Tandoh said modelling showed the sliding scale struck the right balance - boosting state revenue while preserving industry margins - and dismissed fears Ghana was becoming uncompetitive, arguing investors care more about regulatory stability than marginal cost shifts.
(Reporting by Maxwell Akalaare Adombila; Editing by Robbie Corey-Boulet and Susan Fenton)
((Maxwell.Adombila@thomsonreuters.com; +233205362647;))
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