The Ghanaian government has offered a concession to mining companies in a bid to secure parliamentary passage of a new sliding-scale royalty regime for gold, a move the industry warns could jeopardize future investment.
According to the CEO of the Ghana Chamber of Mines, Kenneth Ashigbey, Finance Minister Cassiel Ato Forson has proposed reducing the Growth and Sustainability Levy (GSL) by two percentage points. This offer comes as negotiations continue over the proposed royalty system, which would replace the current flat rate with a variable scale of 5% to 12%, tied to global gold prices.
“We asked that the 3% levy be removed entirely, but the minister is offering to take off only two points,” Ashigbey told Reuters on Monday.
A government source confirmed the proposal, noting the minister remains open to dialogue. However, the source indicated that the original royalty amendment could still be passed by parliament unless the finance ministry submits a revised version.
The new royalty framework, scheduled to take effect in late February, would increase rates by approximately one percentage point for every $500 rise in the gold price—a model similar to that used in Burkina Faso. The government argues the change is necessary for Ghana, Africa’s largest gold producer, to capture greater value from surging metal prices.
Mining companies, however, are pushing for a lower range of 4% to 8%. The Chamber of Mines also advocates for wider price bands, contending that the government’s proposed thresholds would trigger rate increases too frequently, potentially straining higher-cost operations.
The GSL, doubled to 3% last year, became a point of contention earlier this year when producers initially refused to pay. They later complied while negotiations were ongoing.
Ashigbey emphasized the need for urgent engagement, framing the debate as a choice between short-term revenue and long-term investment.
“The question is whether government wants revenue on a sustainable basis or just in the next few years before investments move elsewhere,” he stated.
The Finance and Mines ministries did not immediately respond to requests for comment.
