Global Powers Push Ghana to Halt Gold Royalty Hike

China, the United States, and several Western governments have mounted an unusual joint diplomatic effort to persuade Ghana to halt a planned overhaul of its gold royalty system, a move that could significantly raise costs for some of the world’s largest mining companies.

Ghana, Africa’s largest gold producer, is proposing to replace its current fixed 5% royalty with a sliding scale ranging from 5% to 12%, linked to international bullion prices.

The reform is intended to allow the government to capture greater revenue from gold markets that have recently reached successive historic highs.

However, mining companies argue the upper end of the proposed scale could sharply increase operating costs in one of the world’s most important gold jurisdictions.

The new royalty regime could take effect as early as next week unless the policy is amended or withdrawn. Mining companies operating in Ghana have warned that the 12% upper band would make the country one of the most expensive mining environments in Africa. Several industry executives say the reform would compress profit margins even as global gold prices remain elevated.

According to Reuters, Ghana has already agreed to reduce an existing levy to facilitate the reform’s passage. Even with that concession, mining firms argue the proposed scale remains too steep. Companies have submitted alternative proposals featuring lower royalty rates in an attempt to soften the policy.

The dispute comes as Ghana-linked mining companies report strong financial performance. In 2025, Newmont earned more than $7 billion, while Gold Fields more than doubled its profits and AngloGold Ashanti tripled its earnings. Meanwhile, Perseus Mining reported $421.7 million in profit, representing a 16% year-on-year increase.

Diplomatic pressure has accompanied industry opposition. Representatives from the United States, China, the United Kingdom, Canada, Australia, and South Africa have all raised concerns about the proposal, according to sources familiar with the discussions.

Diplomatic missions from these countries met with Ghana’s minister of lands and natural resources earlier this month and presented a joint document outlining their objections. The group is also seeking additional talks with the finance minister, according to two individuals with direct knowledge of the meeting.

One industry executive described the scale of the diplomatic engagement as unprecedented. “This is the first time I’ve seen the diplomatic community get involved at this scale,” the executive said.

Another executive summarized the concerns raised by foreign missions, noting: “The heads of missions expressed concern that the operating environment of the mines will be challenging.”

Senior executives from major mining companies have also intervened directly with Ghana’s government. Leaders from Newmont, Gold Fields, AngloGold Ashanti, and Perseus Mining sent letters or personally conveyed their concerns to Ghana’s lands minister in December and January.

Chinese mining firms operating in Ghana have also lodged formal protests. Companies including Zijin Mining, Chifeng Gold, and Shandong Gold warned that the proposal could jeopardize the viability of several major projects.

A letter from the Association of China-Ghana Mining, copied to Beijing’s ambassador and reviewed by Reuters, stated that the royalty increase could threaten operations at Zijin’s Akyem mine, Chifeng’s Wassa mine, and Shandong Gold’s Cardinal mine.

Industry sources say the dispute has unified mining companies across national lines. As one senior industry source put it: “The royalty issue has united companies like nothing in recent years.”