Gold producer Ghana offers levy cut to smooth path for higher gold royalties

Africa’s largest gold producer plans to replace its flat royalty rate with a sliding scale of 5% to 12%, allowing the state to capture more revenue as gold prices climb.The proposed system, modelled on a framework used in Burkina Faso, would raise royalty payments by about one percentage point for every $500 increase in the gold price.

The policy shift comes as Ghana reshapes its mining sector amid a surge in global gold prices. Authorities have scrapped several long-term mining agreements and raised royalties on gold output, signalling a broader effort to secure a larger share of windfall revenues from commodities.

Mining companies have been pressing for lower rates. The levy was doubled to 3% last year. Now, Ghana’s finance minister has offered to cut a mining levy by two percentage points in a bid to win industry backing for a proposed gold royalty overhaul that mining companies say could discourage investment. The proposed system, modelled on a framework used in Burkina Faso, would raise royalty payments by about one percentage point for every $500 increase in the gold price.

Ghana plans to replace its flat royalty rate with a sliding scale of 5% to 12%, allowing the state to capture more revenue as gold prices climb.