\n Mining companies have warned that the upper end of Ghana\u2019s proposed new royalty regime, expected to take effect as early as next week unless amended or withdrawn, could make the country one of the most expensive mining jurisdictions in Africa and significantly squeeze profit margins.\n <\/p>\n
\n In January, Business Insider Africa reported that the government had cancelled several long-term mining agreements<\/a> and increased royalties on gold production, a shift toward capturing a larger share of the revenue generated by soaring commodity prices\n <\/p>\n \n The bill proposes a royalty formula that starts at 9\u202fper\u202fcent and rises to 12\u202fper\u202fcent if gold prices exceed $4,500 per ounce, compared with the current band of 3\u202fper\u202fcent to 5\u202fper\u202fcent. The reforms also include stricter local\u2011content requirements<\/a> for in\u2011country procurement and enhanced support for Ghanaian firms.\n <\/p>\n \n However, mining firms argue that the revised royalty structure remains too steep and have submitted proposals for lower rates, Reuters reported.\n <\/p>\n Global pushback intensifies<\/p>\n \n The debate has also triggered unusual diplomatic intervention. In addition to pressure from the United States and China, diplomatic missions from the United Kingdom, Canada, Australia, and South Africa have raised concerns over the proposed policy, according to three senior industry executives\n <\/p>\n \n One mining executive familiar with the discussions said the diplomats warned that the new framework could create a more difficult operating environment for mining companies.\n <\/p>\n \n The UK, Canadian, and Australian High Commissions, as well as the U.S., South African, and Chinese embassies in Accra, did not immediately respond to requests for comment.\n <\/p>\n Mining giants push back<\/p>\n \n Global mining executives have also privately voiced objections. Leaders of major gold producers\u2014including Newmont, Gold Fields, AngloGold Ashanti, and Perseus\u2014reportedly raised concerns directly with Ghana\u2019s lands minister in letters and meetings held between December and January.\n <\/p>\n \n Chinese-owned mining companies have also formally protested the proposal. Firms such as Zijin Mining, Chifeng Gold, and Shandong Gold submitted complaints through industry channels.\n <\/p>\n Africa ups mineral gains<\/p>\n