Ghana’s Finance Minister has offered gold mining companies a partial concession in a behind-the-scenes negotiation to ease the passage of legislation that would more than double the country’s royalty rate, as global gold prices climb to record highs above $5,100 per ounce.
Dr. Cassiel Ato Forson offered to reduce the Growth and Sustainability Levy (GSL) by two percentage points, from three percent to one percent, in exchange for industry acceptance of a new sliding-scale royalty regime currently before Parliament. The concession was disclosed by Ghana Chamber of Mines Chief Executive Officer Kenneth Ashigbey, who confirmed the offer fell short of what the industry was seeking. “We asked that the three percent levy be removed entirely, but the minister is offering to take off only two points,” Ashigbey said.
The new royalty regime, which is expected to take effect unless Parliament amends the legislation, would replace Ghana’s current flat royalty rate with a sliding scale of between five and twelve percent, rising by approximately one percentage point for every $500 increase in the gold price. At current prices, already above $5,100 per ounce, the upper end of that scale would apply immediately, generating royalty payments more than double what companies are currently paying.
The stakes are significant. Gold Fields alone paid $98.8 million in gold royalties to Ghana in 2025, applying the maximum five percent rate throughout the year as gold prices remained above $2,300 per ounce. Under the proposed regime, the same production volumes at current prices would trigger royalties approaching $240 million annually from Gold Fields alone, based on its Ghana output of approximately 475,000 ounces.
The Chamber of Mines has warned that large-scale mining firms already face a high combined tax burden, including the five percent royalty on gross revenue and a 35 percent corporate income tax. Ashigbey said the chamber is not opposed to the government seeking higher returns but wants a narrower band of four to eight percent, with one percentage point ring-fenced for a community development fund. He argued that the government’s proposed thresholds activate higher rates too easily, potentially squeezing higher-cost or lower-grade operations into loss.
Mining policy strategist Ing. Wisdom Gomashie broadly supports the direction of reform but warned against moving too fast on too many fronts simultaneously. “Scrapping stability agreements outright, while simultaneously increasing royalties, could become a double-edged knife,” he said. Stability agreements, currently being phased out, had previously guaranteed mining companies fixed fiscal terms for up to 15 years in exchange for capital commitments typically exceeding $500 million.
The new regime lands at a critical moment for Ghana’s two largest mining operators. Newmont’s stability agreement expired in December 2025 and will not be renewed, while AngloGold Ashanti and Gold Fields both hold agreements expiring in 2027, after which they will transition to the universal royalty framework. Gold Fields is simultaneously navigating the handover of its Damang Mine and the renewal of its Tarkwa mining lease, meaning the royalty outcome will directly shape the economics of its decision on Tarkwa’s 20-year life extension plan.
Conservative estimates suggest the royalty increases could generate between $800 million and $1.2 billion in additional annual government revenue based on current production volumes and gold prices. Whether that figure materialises depends on whether miners maintain output levels, accelerate investment, or begin rerouting capital to jurisdictions with more predictable fiscal environments.
Parliament is expected to take up the bill by March.
