Ghana's Gold Royalty Regime Could Impact Major Miners

The World Gold Council (WGC) is optimistic that its efforts to formalize Ghana's artisanal and small-scale gold mining (ASGM) sector will be considered as the country reforms its mining regulations.

Ghana has approved draft legislation that includes a sliding-scale gold royalty regime tied to prices, which could affect major miners such as Newmont, Gold Fields, AngloGold Ashanti, Zijin, and Perseus Mining.

David Tait, CEO of the WGC, expressed hope that the council's input would be taken into account during the reform process. He noted that Ghana wants a larger share of the sector's earnings at high gold prices but also needs to allow miners to invest for the long-term under stable and fair conditions.

The WGC has been working with Ghana to formalize ASGM, which now employs over one million people directly and supports nearly five million more indirectly. Last year, ASGM produced 104 tons of gold, exceeding large-scale mining production for the first time and generating nearly $11 billion in forex earnings.