Lates News

According to Reuters, three sources with knowledge of the matter and a letter from an industry organization show that the United States and other Western governments have launched a rare coordinated effort to urge Ghana to stop raising gold royalties. They believe that this move could harm the interests of some of the world's largest mining companies. As Africa's largest gold producer, Ghana hopes to change the current fixed tax rate of 5% to a tiered tax rate of 5% to 12% linked to the price of gold. This is aimed at increasing fiscal revenue from the rising trend in gold prices. Mining companies say that unless the new system is modified or revoked, it will go into effect as early as next week. The highest tax rate could make Ghana one of the most expensive regions for mining costs in Africa and potentially squeeze profit margins.