Ghana is reportedly facing diplomatic pressure from both the United States and China to reconsider plans to increase royalties on gold production, according to a document and sources familiar with the matter.
The proposal by the Government of Ghana seeks to raise royalties paid by mining companies as part of broader efforts to increase revenue from the country’s vast mineral resources. However, the move has drawn concern from major international stakeholders involved in the gold sector.
Ghana is Africa’s largest gold producer and one of the world’s leading exporters of the precious metal. The mining industry contributes significantly to government revenue, employment, and foreign exchange earnings.
Sources say officials from both the United States and China have expressed reservations about the proposed royalty increase, warning it could discourage investment in the mining sector. Companies linked to the two countries are among the largest investors and operators in Ghana’s gold industry.
According to the document cited by sources, foreign partners are urging the Ghanaian government to maintain a stable fiscal regime for mining companies, arguing that sudden increases in royalties could affect project viability and reduce future exploration.
Industry players have also reportedly warned that higher royalties could increase operational costs and potentially lead to reduced output or delays in new projects.
The issue has reportedly been raised through diplomatic and industry channels, with both governments encouraging Ghana to engage in broader consultations with investors before implementing any changes.
Ghanaian officials, however, maintain that the country must ensure it receives fair value from its natural resources. Advocates of the royalty increase argue that higher returns from gold mining could help the government strengthen public finances and support development projects.
The debate comes at a time when global demand for gold remains strong, while governments in resource-rich countries are increasingly reviewing fiscal terms to capture a greater share of mining profits.
Policy analysts say the situation highlights the delicate balance Ghana must strike between attracting foreign investment and maximizing revenue from its mineral wealth.
For now, discussions are expected to continue as authorities weigh the economic benefits of higher royalties against concerns from international partners and investors.
