Ghana Records Historic 6 Million Ounces Gold Output in 2025, But Royalty Overhaul Threatens 2026 Growth

 

Ghana produced a record 6 million ounces of gold in 2025, according to provisional industry data, cementing its position as Africa’s top gold producer.

The figures, released by the Ghana Chamber of Mines, show that large-scale mining companies contributed 2.9 million ounces — unchanged from 2024 — while artisanal and small-scale mining (ASM) drove the bulk of the growth, rising to about 3.1 million ounces.

Despite the milestone performance, the industry has warned that projected output of 6.5 million ounces in 2026 is at risk due to Ghana’s planned overhaul of its mineral royalty regime.

Artisanal Mining and High Gold Prices Boost Output

Chief Executive Officer of the Chamber, Kenneth Ashigbey, said the record production was largely supported by surging global gold prices and reforms aimed at formalising artisanal mining.

Speaking on the sidelines of the Mining Indaba, Ashigbey noted that record-high bullion prices encouraged more artisanal gold to enter formal channels, following government measures to curb smuggling and improve gold traceability.

Large-scale output remained stable, supported by production ramp-ups at Shandong Gold Mining’s Cardinal Namdini project and Newmont Corporation’s Ahafo North mine. These gains offset declining ore grades at older operations such as Gold Fields’ Damang mine.

We stayed almost flat in 2025, but the concern is 2026,” Ashigbey said. “The royalty increase will hit new projects immediately — the ones meant to lift next year’s production.”

Royalty Reform Raises Industry Concerns

Ghana is proposing to replace its fixed 5 per cent royalty rate with a sliding scale of between 5 and 12 per cent, tied to gold prices. The reform is part of broader efforts by African governments to capture more value from natural resources amid strong commodity markets.

However, mining firms argue that the proposed upper bands are too steep and could undermine project viability. Although the government reportedly agreed to reduce an existing levy to facilitate the reform, companies say the revised scale still poses significant financial risks.

The new regime could take effect this month unless amended or withdrawn.

Investment and Jobs at Stake

According to a Chamber position paper, increasing royalties from 5 per cent to 7 per cent at a realised gold price of $2,044 per ounce would reduce the net present value of AngloGold Ashanti’s Obuasi mine by 8 per cent — potentially pushing returns below investment hurdle rates.

Similarly, Perseus Mining’s planned $170 million expansion of the Edikan mine pit could become uneconomic under the new structure.

Together, the two projects account for approximately 1,344 direct jobs and more than $800 million in projected royalties and taxes.

Other operators, including Adamus Resources and Asante Gold, are also expected to face financial pressure if the higher royalty bands are implemented.

Mining companies warn that higher royalties could squeeze cash flows, force producers to focus only on high-grade ore, shorten mine lifespans and delay expansion plans — ultimately affecting government revenue in the long term.

While 2025’s record output underscores the resilience of Ghana’s gold sector, industry leaders say policy stability and competitive fiscal terms will be critical to sustaining growth in 2026 and beyond.