Ghana’s proposed mining royalty framework is facing criticism from policy analysts over what they describe as insufficient stakeholder consultation in setting the new royalty thresholds for mining firms.
Natural resource governance advocate Dr. Steve Manteaw raised the concerns during an appearance on Joy News’ PM Express on Monday, arguing that the process used to determine price bands under the sliding-scale royalty model lacked adequate engagement with industry players and development partners.
The debate follows earlier amendments to Ghana’s Minerals and Mining Act (Act 703), which transferred authority to the sector minister to determine royalty rates, leaving the existing 5% rate in place until a new structure is formally prescribed.
Dr. Manteaw said the issue resurfaced during discussions surrounding Ghana’s lithium agreement, which reignited calls to review the country’s broader mining revenue framework.
He noted that reform proposals date back to 2012 when the Ghana Extractive Industries Transparency Initiative (GHEITI) recommended a windfall tax to allow the state to capture additional revenue during periods of high commodity prices.
Such mechanisms are widely used in resource-rich economies, he explained, because commodities like gold often move through boom-and-bust cycles, making flexible fiscal arrangements necessary to balance risks between governments and companies.
Although the windfall tax proposal faced resistance from mining firms at the time, the petroleum sector later adopted a similar mechanism through Ghana’s petroleum revenue management framework.
The current sliding-scale royalty proposal is intended to achieve a similar outcome by adjusting royalty payments according to gold price movements, allowing the state to benefit more during price booms and less during downturns.
However, Dr. Manteaw warned that the lack of consultation in setting the thresholds could create uneven conditions in the industry, particularly because large producers such as Newmont, AngloGold and Gold Fields are protected by stability agreements.
He said smaller and mid-tier mining companies, including some Ghanaian firms, could face higher royalty payments under the new system, potentially placing additional financial strain on operators already struggling with rising production costs.