Global Trade Alert

The government of Ghana has increased the mining royalty rate from 3% to 5% eventhough it had earlier on in the 2010 budget statement proposed an increase in the rate from 3% to 6%.

The amendment was assented by the president on 17 March 2010 and gazetted on 19 March 2010. The amended section now reads " A holder of a mining lease, restricted mining lease, or small scale mining license shall pay royalty in respect of minerals obtained from its mining operations to the Republic at the rate of 5% of the total revenue earned from minerals obtained by the holder."

Unconfirmed media reports say the fixed rate of 5%was reached after consultations with affected companies who could have invoked their right of exclusion under their stability agreements.