Mining Firms in Ghana Signal Possible Response to New Royalty Law
Mining companies operating in Ghana are weighing their options following the implementation of the country’s new sliding-scale gold royalty regime, which industry players say could significantly increase the tax burden on the sector.
Chief Operating Officer of the Ghana Chamber of Mines, Ahmed Dasana Nantogmah, says the industry is assessing the long-term impact of the new policy and may decide on a course of action after reviewing its implications.
Speaking on JoyNews, Mr. Nantogmah suggested the industry could respond if concerns about the policy are not addressed.
“From tomorrow [Tuesday, 10th March, 2026], unless something drastic happens or we decide to do something, companies will begin paying. That is something we are looking at because we have to examine the long-term impact. Even for Ghana, if a Ghanaian company invests in another country and there’s an issue, our government would intervene.”
“So they are just cautioning us that we need to be careful with this hand that is laying the gold. We are still interested in engaging the government. The government can decide to change the law, withdraw it, or amend it. That’s what we are hoping,” he said when asked whether mining firms would comply with the new regime.
The comments of the COO of the Chamber of Mines signal that mining companies may still pursue further engagement with government or explore other options to address concerns about the new royalty structure.
The Chamber of Mines says it remains interested in engaging government to reconsider aspects of the policy, particularly the upper royalty bands.
According to Mr. Nantogmah, industry players had earlier proposed a more moderate sliding scale that would balance government revenue goals with the operational realities of mining companies.
Despite the concerns, the Chamber acknowledges that companies will have little choice but to comply with the law once it takes effect.
He noted that failure to pay the required royalties would render companies non-compliant under Ghana’s mining laws.
“As a good corporate entity, you are forced to pay. It doesn’t mean you agree with it,” he said.
Ghana began implementing a new sliding-scale royalty regime for gold on March 10, 2026, linking government revenue from mining directly to global commodity prices. The policy replaces the long-standing flat 5% royalty previously paid by mining companies in Africa’s top gold-producing nation.
Under the new framework, royalty payments increase as gold prices rise, reaching 12% when bullion prices hit $4,500 per ounce. Gold is currently trading above $5,000 per ounce, meaning companies could immediately face the higher band of the tax structure.
The reform is part of a broader push by resource-rich African countries to capture a greater share of windfall profits from elevated commodity prices.
