What's Happening?
Ghana achieved a record gold production of 6 million ounces in 2025, with large-scale mines contributing 2.9 million ounces. The increase is attributed to artisanal and small-scale mining, which rose to 3.1 million ounces. However, the industry faces
uncertainty due to Ghana's planned overhaul of mineral royalties, which could impact future production. The proposed sliding-scale royalty rate, tied to gold prices, aims to increase government revenue but has raised concerns among mining companies about its potential to delay new projects and expansions.
Why It's Important?
Ghana's record gold output underscores its position as Africa's top gold producer, contributing significantly to the country's economy. However, the proposed changes to the royalty system could have far-reaching implications for the mining sector. While the government seeks to capitalize on high commodity prices, mining companies warn that increased royalties could reduce cash flow, shorten mine lifespans, and make some projects uneconomical. The outcome of this policy change will be crucial for the industry's future, affecting jobs, investments, and Ghana's economic growth.
What's Next?
The new royalty regime could take effect soon unless amended or withdrawn. Mining companies are advocating for lower rates, arguing that the proposed scale is too steep. The government's decision will likely influence investment decisions and the viability of future projects. Stakeholders will be closely monitoring the situation, as the policy's implementation could set a precedent for other resource-rich countries seeking to increase their share of mining revenues.
