Ghana’s mining sector will, in the near future, undergo a massive overhaul to make its royalty framework fit-for-purpose and take into account the interests of the citizens and the country at large.
This is an announcement made by the Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, at a Press Conference on Wednesday. The Minister revealed that Ghana is preparing to introduce a completely revamped royalty framework for the mining sector.
This new law, he says, promises to bring clarity, fairness, and flexibility to how the country earns from its mineral wealth.
Emmanuel Kofi Armah Buah announced that the government has been working closely with the Attorney-General to draft a new legislative instrument that will permanently guide the calculation and application of royalties across all minerals, including gold and lithium. The instrument is expected to be laid before Parliament after the Cabinet’s review.
“I’m very happy to inform you that we’ve worked closely with the Attorney General who will be coming to, once we finish, cabinet will be coming to Parliament with a new instrument that will permanently lay a complete, comprehensive guideline on royalties, not only in the lithium sector, but in all minerals,” the Minister announced.
The Weaknesses of the Existing Laws
This move is expected to mark the most significant overhaul of Ghana’s royalty system in decades.
For years, the sector has operated on a patchwork of laws and amendments that left important gaps. Ghana’s royalty rate originally ranged between 3 and 6 percent, before being fixed at 5 percent. Later, an amendment suggested that royalties could be determined “as applicable by law.”
However, the legal instrument required to define what “applicable by law” meant was never created. The result is a system stuck at a flat 5 percent, with no flexibility to respond to market realities.
The minister described the situation as impractical, especially in a sector where mineral prices can swing dramatically. He pointed to how the price of gold recently surged from around $1,900 per ounce to nearly $4,000, yet Ghana had no mechanism to adjust royalties or ensure the country benefited from that windfall.
He narrated that, “There was an initial royalty rate of 3, 2, 6 percent, which was amended and stated that royalty would be at 5 percent. And then there was another amendment that says that it would be by an act applicable by law. What was missing was that the instrument that should guide the applicable by law was never in place. And so, technically speaking, what you could refer to is the original one, which says that 5 percent.”
What Makes the New Framework Different?
The new law will introduce a unified, modern, and adaptable royalty structure designed to respond to price changes in global mineral markets.
This means Ghana will no longer be locked into fixed rates that fail to reflect market highs or cushion the country during downturns. The Minister indicated that, unlike the old regime, the coming framework will provide a clear and comprehensive legal basis for how royalties are set.
It will also apply to all minerals, ensuring uniformity and transparency, and allow flexible adjustments when prices rise sharply, so Ghana can benefit more from its resources.
The new framework will offer guidance for lower royalties during price slumps, helping companies stay viable and protecting jobs.
“It’s very important we do so, having learned lessons as we go forward, learning lessons. It was very clear, for example, not too long ago, the, you know, an ounce of gold was what? 1,900, 2,500, went over 3,000, and close to 4,000. There’s no other mechanism for you to make any adjustments, for example. And so I thought this is the opportunity for us to basically review all of that. And I’m happy to inform you that I’ve taken the steps to do exactly that,” he noted.
A Turning Point for the Sector
The mining sector continues to remain one of Ghana’s biggest economic anchors, yet for years the country has struggled to secure a fair share from its natural resources due to rigid or outdated rules.
This overhaul is expected to shift toward a smarter, more responsive framework that can adapt to changing global markets while ensuring investors and the nation both win.
