Ghana is planning an interesting policy shift. They intend to introduce a new royalty system for the gold mining industry.

Until now, Ghana has imposed a flat 5% tax rate on gold miners, but there is a move to switch to a variable system linked to market prices. Specifically, when the gold price reaches $4,500 per ounce, the royalty rate will increase to 12%. The Ghana Minerals Commission announced this new system, and shifting from the traditional fixed tax rate to a flexible, price-linked model is a notable change for the industry.

What’s particularly interesting is that a similar variable system will also be applied to lithium. Based on a price range of $1,500 to $3,200 per ton, the royalty will be adjusted between 5% and 12%. However, for other minerals, the fixed 5% tax rate will continue to be maintained.

The reason behind Ghana, Africa’s largest gold producer, adopting such policies is to maximize mineral revenue while responding to fluctuating international markets. Despite pressure from the U.S. and Western countries to change policies, Ghana seems committed to pushing this innovative approach. For resource-rich countries, a price-linked royalty system is gaining attention as a flexible model to adapt to market changes.