Global diplomatic efforts pressure Ghana, urging a halt to the increase in gold royalty fees

PANews March 5 News, according to Reuters, three informed sources and a letter from an industry organization indicate that the U.S. and other Western governments have launched a rare coordinated effort urging Ghana to stop raising its gold royalty fees. They believe this move could harm the interests of some of the world’s largest mining companies. As Africa’s largest gold producer, Ghana hopes to change the current fixed tax rate of 5% to a tiered rate ranging from 5% to 12%, linked to gold prices. This move aims to generate more revenue from the recent record-high gold prices. Mining companies say that unless the policy is amended or withdrawn, the new system could take effect as early as next week. Its highest tax bracket would make Ghana one of the most expensive regions for mining on the continent and could squeeze profit margins.

Three senior mining executives described such high-level diplomatic intervention over a fiscal proposal as highly unusual. One industry veteran said, “This is the first time I’ve seen such large-scale diplomatic involvement.” Two individuals directly familiar with the meetings revealed that representatives from various countries’ delegations met with Ghana’s Minister of Lands and Natural Resources this month and submitted a joint document outlining their concerns.