A lot of misinformation surrounds this subject matter.

1. The government is not doing anything special that is incuring the wrath of these countries. Our government urgently needs money and is eyeing gold mining companies to tax retrospectively….

2. A government that attempted to reduce a royalty rate of 10% on lithium to 5% is certainly not in a good position for citizens to think they are now acting well to demand more on gold….

3. The fact is that the proposed hike on gold, as proposed by the government, is not a bad idea; however, existing multinational companies already have agreements with the state where our own laws protect such companies from such arbitrary decisions by the government midway into the agreements.

4. The government's decision to pass the royalty hike on gold mining companies can be applied to: Gold Mining Companies whose leases have expired and are to re-negotiate with the state, that is if the state still wants the holders of the lease to operate it; and

New Gold Mining Companies whose mining leases are yet to be signed by the Minister for Lands & Natural Resources.

5. The concept of a sliding-scale royalty between 5% and 12% (for gold) is not inherently a bad policy idea.

However, the critical issue lies in existing contractual obligations between the state and multinational mining companies. Most operating gold mines in Ghana have stability clauses and negotiated royalty terms, typically around 5%, embedded in their mining lease agreements.

Ghanaian law and international investment protections recognize these agreements. Because of this, the government cannot arbitrarily impose new royalty rates on existing leases midway through their contractual lifespan without risking serious legal consequences.

6. Any attempt by the government to pass any royalty law to take retrospective effect on all existing mining companies with lease agreements (mostly 5% royalty rate) will backfire and will be met with a lot of agitation and diplomatic intrusions.

7. The Ghana Chamber of Mines is on record as having lamented this development by the government, and they (their membership) have escalated the matter to their host countries.

Conclusion and Recommendations

1. It is not about the government doing anything special for someone to think foreign interests want to torpedo our sovereign interests. It is the state wanting to cash out midway through agreements because gold prices are soaring. The government needs money urgently; that is not bad, but the approach is.

2. If the government fails to reach an amicable solution with the Chamber and proceeds to pass such a one-sided decision, some or all of the companies will resist paying and will trigger legal actions against the state.

Companies will resort to the World Bank's International Centre for Settlement of Investment Disputes (ICSID) for arbitration in such matters. A recent precedent was when Tanzania, under John Magufuli, attempted similar moves in 2017 and caused the Tanzanian government over $200 million in judgment debts. Matters between Acacia Mining & Barrick Gold and the Tanzania government led to years of legal and diplomatic tensions.

The most recent tension between Mali and Barrick Gold's Loulo-Gounkoto Gold Mine, resulting from the former passing sudden fiscal hikes, should be a learning curve for the government of Ghana.

3. A good mining investment destination is not one that twists arms in the middle of agreements but rather one that lets policy precede government intent and actions and, even in the middle of agreements, must caucus with the investor.

4. These actions further consolidate reasons why Ghana has dropped 7 places in 2025 on the global mining competitiveness jurisdiction index. Things like this deter investment; it isn't about the government doing something extraordinary.

5.Mining companies may stop investing in expansion, new investors may look elsewhere, and you will be told we want locals to take over the sector; it doesn't happen that way. You don't collapse multinational companies in an attempt to localize the sector.

6. State capture is in action, termed as resource nationalization. In the end, the state loses big time.

7. Royalty hikes on existing companies must be mutual; royalty hikes on new mines and expired leases can be at any rate the government wishes. We know this and we know peace.

8. The NDC government must be serious and set clear its mining policies. The situation now is dire for the country.