Global diplomatic efforts pressure Ghana to suspend increase in gold royalty fees

Golden Ten Data, March 5th — According to Reuters, three informed sources and an industry association letter indicate that the United States and other Western governments have launched a rare coordinated action, urging Ghana to stop raising the royalty rate on gold. They believe this move could harm the interests of some of the world's largest mining companies. As Africa's largest gold producer, Ghana hopes to change the current fixed tax rate of 5% to a tiered rate ranging from 5% to 12%, linked to the price of gold. This initiative aims to gain more fiscal revenue from the surge in gold prices, which have repeatedly reached historic highs. Mining companies state that unless the new system is amended or revoked, it will take effect as early as next week. The highest tier tax rate will make Ghana one of the most expensive regions for mining on the African continent and could squeeze profit margins.