• Ghana plans to introduce a progressive gold royalty system that could raise the effective rate from 5% to about 12% at current prices.

• Authorities say the reform will increase government revenue while preserving mining companies’ margins.

• The reform aligns with a broader West African trend, as countries such as Burkina Faso, Mali and Côte d’Ivoire revise mining fiscal regimes.

Despite mounting pressure from mining companies and foreign governments, Ghana plans to proceed with a major overhaul of its gold royalty regime this week.

The government intends to introduce legislation that more than doubles royalty rates on gold, Reuters reported on Monday, March 9, citing Isaac Tandoh, Director-General of the Minerals Commission, the country’s mining regulator.

Like recent policy shifts in Burkina Faso, Mali and Côte d’Ivoire, the reform aims to help the state capture a larger share of revenue from the surge in global gold prices.

Ghana currently applies a flat 5% royalty rate on gold production. The new proposal would replace that structure with a progressive royalty system linked to market prices.

At current gold prices, the model would raise the effective royalty rate to around 12%.

Mining companies have voiced concerns that higher royalties could increase operating costs and weaken project economics. A coalition of foreign governments, including the United States, China and the United Kingdom, has also relayed those concerns in recent weeks.

However, Isaac Tandoh said the government designed the reform to strike a balance between public revenue and industry profitability.

He said economic modelling shows the system can raise state income while preserving mining companies’ margins.

Authorities therefore plan to move ahead with the reform, with implementation scheduled for Tuesday, March 10.

Tandoh added that Ghana held discussions with several foreign governments. He said these partners do not oppose a revision of the royalty framework in principle, despite the concerns expressed.

The policy shift comes as gold prices continue to climb on global markets.

Analysts expect the price of gold to reach around $6,000 per ounce by the end of 2026, compared with roughly $5,100 per ounce currently.

Ghana therefore aims to maximize revenue from its main export commodity at a time of strong market conditions.

This approach reflects a broader regional trend. Several West African countries, including Burkina Faso, Côte d’Ivoire and Mali, have recently revised mining fiscal regimes to secure a greater share of mineral revenues.

The reform’s full impact on Ghana’s mining sector remains uncertain as implementation approaches.

The government is also considering abolishing so-called mining stability agreements, a move that could expose companies to taxes from which they previously enjoyed exemptions.

Ghana remains Africa’s largest gold producer and hosts several major mining groups, including Newmont, AngloGold Ashanti, Gold Fields and Perseus Mining.

Market participants will therefore closely monitor how the new royalty framework reshapes costs, investment decisions and government revenue in one of the world’s key gold jurisdictions.

Aurel Sèdjro Houenou