Golden Defiance: Ghana Snubs U.S. China Warnings

Ghana has stood its ground and refused to be bullied by a sustained joint pressure from the United States, China and Western allies to rescind an economic decision to increase royalties on gold mining.

Washington, Beijing, and international partners warn that the proposed higher tax brackets on gold royalties would have a negative effect on the mining sector and erode potential future investment gains. However, Accra insists it is a non-negotiable and prudent decision aimed at achieving economic independence and the protection of national interests.

It is a curious and rare cooperation between China and the United States against Ghana but the West African country has remained defiant to the ‘Global Powers’ with the Chief Executive of Ghana’s Minerals Commission, Isaac Andrews Tandoh telling the international media the decision forms part of the Ghana-first-strategy and that the country deserves a “fairer share” of mineral wealth during periods of record-high prices.

The current tax regime on gold royalties is pegged at 5%, but Mr Tandoh said the new tax increases could reach up to 12% when the gold price exceeds $4,500 per ounce, explaining that the decision is not intended to punish investors. He said it is rather for Ghanaians to “share in the blessing” of rising global gold prices.

Isaac Andrews Tandoh argued against the assertion that the higher tax net would be a disincentive to investors. “They met us, they are not against the review in principle,” he said and opined that the partners would place priority on regulatory stability rather than marginal cost shifts.

 

Minority Warns of Mass Job Losses

However, the Minority in Parliament has expressed strong reservations about the proposed Minerals and Mining Royalty Regulations, 2025.

Speaking to journalists in Accra yesterday, the Chairman of the Subsidiary Legislation Committee, Patrick Boamah, warned that the policy could make Ghana’s mining sector less attractive to investors and potentially lead to major job losses.

According to Mr Boamah, the regulations could result in the loss of up to one million jobs if mining investments decline:

“If you introduce this, you may accrue some revenue, but the net effect is some job losses. Close to about a million jobs. If you lose close to a million jobs because the investments required did not come in, you are not going to get the employees’ tax, tax from companies,” he said.

Mr Boamah urged the government to instead reduce the Growth and Sustainability Levy on mining companies to one percent, arguing that such a move would help sustain investor confidence while protecting employment in the sector.

 

Diplomatic Pressure Mounts

Beyond the United States and China, diplomatic missions from the United Kingdom, Canada, Australia and South Africa have also raised concerns, in what mining executives describe as an unusually high-level diplomatic response to a fiscal policy proposal.

“This is the first time I’ve seen the diplomatic community get involved at this scale,” a senior industry source said.

Reuters’ Sources said representatives from the diplomatic missions met Ghana’s Minister for Lands and Natural Resources earlier this month and presented a joint document outlining their concerns. The group is also seeking further discussions with the finance minister.

According to one industry executive, the heads of mission expressed fears that the proposed royalty increase could make the operating environment for mining companies more difficult.

All sources spoke on condition of anonymity due to the sensitivity of the issue.

The British, Canadian and Australian High Commissions as well as the U.S., South African and Chinese embassies in Accra, had not responded to requests for comment at the time of filing this report.

Mining CEOs Raise Alarm

Top executives from major global mining firms have also privately voiced their concerns over the proposed changes.

Chief executives of Newmont, Gold Fields, AngloGold Ashanti and Perseus Mining are reported to have written or personally delivered their concerns to the lands minister between December and January.

Chinese-owned mining firms, including Zijin Mining, Chifeng Gold and Shandong Gold, have also lodged formal protests.

A letter from the Association of China–Ghana Mining, copied to China’s ambassador in Ghana and seen by Reuters, warned that the new royalty regime could threaten the viability of several operations, including Zijin’s Akyem mine, Chifeng’s Wassa mine and Shandong’s Cardinal gold project.

“The royalty issue has united companies like nothing in recent years,” another senior industry source noted.

Despite the concerns raised, the mining firms and Ghana’s Ministries of Lands and Finance are yet to issue a statement on the matter.

Meanwhile, Ghana-linked mining companies reported strong financial performances in 2025. Newmont recorded earnings of more than $7 billion, Gold Fields more than doubled its profits, AngloGold Ashanti tripled its earnings, while Perseus Mining reported profits of $421.7 million, a 16 percent year-on-year increase.