U.S., China push Ghana to halt gold royalty hike amid miner backlash

The governments of the United States and China have joined other Western nations in urging Ghana to reconsider a proposed increase in gold royalties, as mining companies warn the plan could raise costs in Africa’s largest gold-producing country.

Diplomats from several missions have asked authorities in Accra to pause the proposal, which would replace the fixed 5-percent royalty with a sliding scale of between 5 and 12 percent tied to global bullion prices. Ghana’s government says the reform is intended to ensure the state receives a larger share of revenue at a time when gold prices are reaching record highs.

Global pressure builds over Ghana royalties

Mining companies say the upper end of the scale could make Ghana one of the most expensive places in Africa to produce gold. Executives argue the higher rate would tighten operating margins and may affect investment decisions if introduced without adjustments. The measure could take effect as soon as next week unless authorities revise or delay it.

Ghana has already signaled some flexibility. Officials offered to lower an existing levy to make the broader reform more acceptable to producers. Mining groups, however, say the revised terms still leave the overall burden too high and have submitted alternative proposals seeking a lower ceiling.

Diplomatic engagement has intensified in recent weeks. Representatives from the United Kingdom, Canada, Australia and South Africa joined officials from the United States and China in raising concerns with Ghanaian authorities.

Coordinated diplomacy targets Ghana mining policy

Envoys met earlier this month with the country’s lands and natural resources minister and submitted a joint document outlining their position. The group is also seeking talks with the finance ministry. Mining executives said such coordinated diplomacy is uncommon for a fiscal policy proposal affecting the sector.

Global producers have also raised concerns directly with the government. Executives from companies including Newmont, Gold Fields, AngloGold Ashanti and Perseus Mining contacted the lands minister late last year and early this year to warn about the potential impact.

Chinese operators have raised similar concerns. Companies such as Zijin Mining, Chifeng Jilong Gold Mining and Shandong Gold Mining said the proposed royalties could threaten the economics of several projects, including the Akyem, Wassa and Cardinal mines, according to a letter from the Association of China–Ghana Mining.

Ghana strengthens finances through gold exports

While discussions continue, Ghana has been strengthening its financial position through rising gold exports and a state-backed buying program. The Ghanaian cedi gained about 41 percent against the U.S. dollar in 2025, marking its first annual advance since at least 1994. The currency ranked second among 144 tracked globally, behind only Russia’s ruble.

Ghana’s foreign reserves surged to $13.8 billion from $8.9 billion by the end of 2024. A major contributor has been GoldBod, a state-backed body launched in May 2025 to purchase gold directly from small-scale miners. The program aims to curb smuggling, formalize informal production, and increase the volume of gold flowing through official export channels.

Officials said GoldBod exported 25,780.6 kilograms of gold in the third quarter of 2025, slightly exceeding shipments from large-scale miners. The Ghanaian government has set a weekly gold purchase target of about 3.02 tonnes, including at least 2.45 tonnes from the artisanal and small-scale mining (ASM) sector and a minimum of 0.57 tonnes from large-scale mines.