Ghana Miners Warn Higher Gold Royalty Could Threaten Investment

Ghana’s mining industry warned that a government proposal to increase the royalty levied on gold producers could deter investment.

The Ghana Minerals Commission last week disclosed plans to review the existing fiscal regime, including a proposal to change the fixed royalty of 3% to 5% that gold miners currently negotiate. That would potentially be replaced by a sliding royalty of 5% to 12% — pegged to the price of bullion — as the West African nation looks to increase its share of revenues from the precious metal’s record-breaking rally.