Ghana Defies US and China with New Gold Royalty Regime

Ghana, Africa’s largest gold producer, is pressing ahead with a new royalty system for gold mining companies, despite opposition from the United States and China. The move, part of a broader trend of resource nationalism across Africa, aims to secure a greater share of revenue from the country’s mineral wealth.

Sliding Royalty Rates Based on Gold Prices

The Ghanaian government has abolished the previous fixed 5% royalty rate and introduced a tiered system linked to the international price of gold. Under the new rules, royalties will increase as gold prices rise, reaching 12% for sales exceeding $4,500 per ounce [Reuters]. This is more than double the existing rate and is designed to capture increased profits during market booms.

International Opposition

Both the United States and China have expressed concerns about the new royalty regime, citing increased costs for mining companies and potential negative impacts on investment [GhanaWeb]. However, Ghana is prioritizing its economic interests and seeking to ensure that resource profits benefit its citizens.

Expanding to Lithium

Ghana’s ambitions extend beyond gold. The government also plans to implement a royalty system for lithium, a key component in electric vehicle batteries, ranging from 5% to a maximum of 12% [Reuters]. This move aims to secure control over strategic mineral assets and establish a strong taxation system for the future.

A Growing Trend in Africa

Ghana’s actions are part of a wider trend across Africa, where resource-rich countries are seeking to increase their share of revenue from mining operations. This policy of securing national mineral wealth is reshaping the global raw material supply chain and altering the balance of power between resource-holding and consuming nations [Reuters].

Strong Trade Ties with China

Trade relations between Ghana and China have reached a record high, surpassing US$14.1 billion, representing a year-on-year growth of over 19.3% [Modern Ghana]. This milestone reflects the growing strength of the China–Ghana Strategic Partnership and expanding economic cooperation.