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Ghana Introduces Progressive Royalty System for Minerals

The Government of Ghana has tabled a new regulatory framework in Parliament that will fundamentally change how mineral royalties are calculated. The proposed Minerals (Royalties) Pricing Schedule Regulation, presented by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, replaces fixed royalty rates with a sliding-scale system tied to global market prices.

Date Created : 12/20/2025 : Story Author :

The reform aims to ensure the nation receives a fairer share of revenues when international commodity prices are high, while maintaining a transparent and competitive investment environment.

Key Changes for Gold

Ghana’s gold royalties will shift from a flat rate to a progressive scale:

* 5%: When the gold price is at or below US$1,900 per ounce.

* 6%: For prices above $1,900 to $2,000/oz.

* 7%: For prices between $2,000 and $2,500/oz.

* 8%: For prices between $2,500 and $3,000/oz.

* 9%: For prices between $3,000 and $3,500/oz.

* 10%: For prices between $3,500 and $4,000/oz.

* 11%: For prices between $4,000 and $4,500/oz.

* 12%: The maximum rate, applied when prices exceed $4,500/oz.

Strategic Pricing for Lithium

Reflecting lithium's critical role in the global energy transition, a similar sliding scale has been established, notably featured in the recently approved Ewoyaa lithium project agreement with Barari DV:

* 5%: When the price is up to US$1,500 per tonne.

* 7%: For prices between $1,501 and $2,500/tonne.

* 10%: For prices between $2,501 and $3,000/tonne.

* 12%: When prices exceed $3,000/tonne.

Stability for Other Minerals

To preserve stability for other sectors,the regulation maintains a uniform 5% royalty rate for minerals including diamond, bauxite, manganese, salt, limestone, and iron ore.

Enhanced Transparency and Valuation

The regulation introduces clear rules for determining mineral values to curb under-declaration and boost state revenue:

* Gold will be valued using the weekly average London PM Fix Price from the London Bullion Market Association (LBMA).

* Lithium and other minerals will be valued on an arm’s-length basis, referencing prevailing international market prices.

* Provisions are included for adopting alternative internationally recognized price indices if current benchmarks cease to exist.

Government’s Vision

Minister Buah stated that the new framework is a cornerstone of the government’s policy to secure optimal benefits from Ghana’s natural resources. “This model ensures we capture greater value for the state during market upswings, while providing the predictability and competitiveness that responsible investors require,” he explained.

The regulation will come into force after the mandatory 21 sitting-day parliamentary review period, pending approval by the House.